Samsung Electronics and U.S. chip designer Broadcom have signed a memorandum of understanding (MoU) to expand their partnership in AI semiconductors. The collaboration, expected to exceed US$200 billion through 2030, will focus on advanced memory, chip manufacturing and packaging technologies as demand for AI infrastructure continues to grow.
Samsung Electronics has announced a major expansion of its partnership with Broadcom, signing a memorandum of understanding (MoU) for a collaboration expected to exceed US$200 billion through 2030.
The partnership covers three key areas of AI semiconductor production: memory chips, foundry manufacturing and advanced packaging. Although the MoU is not a legally binding contract, it sets out a long-term plan for the two companies to work together on future AI chip technologies.
As part of the agreement, Samsung will manufacture Broadcom’s next-generation communications chips using its sub-2-nanometre process technology at its Pyeongtaek facility in South Korea. The two companies will also collaborate on next-generation high-bandwidth memory (HBM), including HBM4 and HBM4E, for future AI accelerators.
The companies will also work together on advanced packaging technology, which brings memory and logic chips closer together to improve the speed and efficiency of AI systems.
Samsung said the partnership supports its strategy of providing customers with an end-to-end semiconductor solution by combining memory, foundry manufacturing and advanced packaging.
The partnership is expected to strengthen Samsung’s foundry business as the company works to narrow the gap with Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker. A long-term partnership with Broadcom could help Samsung attract more advanced manufacturing orders as demand for AI chips continues to grow.
The partnership was announced during an AI summit in San Francisco hosted by South Korean President Lee Jae-myung. At the event, South Korean companies announced semiconductor and AI partnerships worth around US$950 billion. Among them, SK Group unveiled agreements valued at about US$750 billion, including a partnership between SK hynix and Nvidia worth more than US$500 billion for next-generation memory and AI data centres.
The announcement highlights the growing demand for AI chips and the increasing collaboration between chip designers and manufacturers as companies expand AI infrastructure around the world.
Read Article: SK Group, NVIDIA Forge $500 Billion AI Partnership Spanning Data Centers, Chips and Memory
