Samsung, Broadcom Sign $200 Billion AI Chip and Memory Pact Through 2030

Five-year agreement covers HBM supply and 2-nanometer foundry cooperation through 2030

Samsung Electronics said it will partner with Broadcom on a more than $200 billion agreement over the next five years to supply advanced memory chips and support production of artificial intelligence semiconductors.

Samsung said on July 24 it signed a strategic memorandum of understanding with Broadcom at an AI Summit in San Francisco to help build next-generation AI infrastructure. Attendees at the signing ceremony included Han Jin-man, president and head of Samsung's foundry business; Broadcom Chief Executive Officer Hock Tan; other senior executives from both companies; and government officials.

The companies agreed to pursue more than $200 billion in strategic cooperation in memory and foundry through 2030. They also agreed to broaden technology collaboration across the AI semiconductor sector.

Turnkey cooperation in memory and foundry

The agreement goes beyond a simple advanced-memory supply deal. It sets up a turnkey partnership that spans foundry manufacturing and advanced packaging for AI chip production.

Broadcom is a major fabless chip designer that develops custom AI semiconductors, or ASICs, for global technology companies including Google. It also participates in the development of Google's TPU AI chips. Those chips require high-bandwidth memory, or HBM. Broadcom's role has grown as major technology companies ramp up adoption of in-house AI accelerators.

Under the partnership, Samsung plans to supply next-generation HBM products, including sixth-generation HBM4 and seventh-generation HBM4E, as well as other advanced memory solutions. At the same time, it will support production of Broadcom's next-generation AI semiconductors using 2-nanometer-and-below foundry processes and advanced packaging technology.

The companies also plan to optimize chip design and manufacturing from the earliest stages. They aim to connect the entire process from chip design and advanced packaging to mass production, shortening development time and maximizing performance and power efficiency.

Production may take place in Pyeongtaek

Broadcom's next-generation AI chips may be produced at Samsung's Pyeongtaek campus, the company's foundry manufacturing base.

Jun Young-hyun, vice chairman and head of Samsung's Device Solutions division, said semiconductor solutions that tightly integrate memory, logic and advanced packaging will be a core competitive advantage in the AI era. Expanding cooperation with Broadcom will help accelerate the development of future AI infrastructure and deliver greater value to customers, he added.

Charlie Kawwas, president of Broadcom's Semiconductor Solutions Group, said the companies will work together to develop next-generation solutions tailored to increasingly diverse market demand.

Kim Chae-yeon, Korea Economic Daily reporter why29@hankyung.com