Samsung, Broadcom expand strategic alliance for AI chip development

The long-term partnership aims to deepen collaboration across semiconductor manufacturing, advanced packaging and memory technologies, positioning both companies to address rising global demand for custom AI processors and next-generation computing infrastructure.

Samsung Electronics has signed a long-term strategic agreement with U.S.-based semiconductor designer Broadcom to expand collaboration across memory chips, contract chip manufacturing and advanced packaging technologies, reinforcing both companies' ambitions in the rapidly growing artificial intelligence semiconductor market.

The partnership, which is expected to extend through 2030 and cover projects valued at more than $200 billion, marks one of Samsung's most significant semiconductor collaborations in recent years. As technology companies increasingly invest in custom AI chips tailored for specific workloads, the agreement is expected to strengthen Samsung's position as a manufacturing partner for advanced semiconductor solutions.

Samsung said the expanded relationship reflects its strategy of providing customers with integrated semiconductor capabilities spanning chip design support, manufacturing, memory technologies and packaging for AI and high-performance computing applications.

Focus on advanced manufacturing and AI infrastructure

The collaboration will combine Broadcom's expertise in designing application-specific integrated circuits (ASICs) with Samsung's advanced semiconductor manufacturing capabilities. ASICs have become increasingly important as enterprises seek purpose-built chips capable of delivering higher performance and improved power efficiency for AI workloads.

As part of the agreement, Broadcom's next-generation communications chips for high-speed data transfer will be manufactured using Samsung's advanced sub-2-nanometre process technology. The companies will also jointly develop future generations of high-bandwidth memory (HBM), a critical component for AI accelerators and data centre processors that require rapid data movement.

The partnership is expected to improve utilisation of Samsung's advanced foundry facilities while helping the company strengthen its competitiveness in semiconductor manufacturing. Securing long-term production commitments from a leading AI chip designer such as Broadcom could enhance Samsung's ability to attract additional customers developing custom AI processors.

Strengthening Samsung's position in the foundry market

The agreement comes as Samsung continues efforts to narrow the gap with global foundry leader Taiwan Semiconductor Manufacturing Co. (TSMC) by expanding its portfolio of advanced manufacturing customers. The growing shift among major technology companies towards designing proprietary AI accelerators has increased demand for specialised manufacturing partners capable of delivering cutting-edge fabrication technologies.

Samsung has recently intensified discussions with several leading technology firms regarding next-generation semiconductor production. Last month, Vice Chairman and Co-CEO Jun Young-hyun, who also heads the company's semiconductor business, said he had discussed future foundry collaboration and upcoming HBM4E and HBM5 memory technologies with Nvidia Chief Executive Jensen Huang.

Earlier this year, Samsung also indicated that negotiations with major global technology companies were expected to translate into additional orders for its 2-nanometre manufacturing process. The company has already secured several high-profile contracts in recent years, including a multi-billion-dollar agreement to manufacture logic chips for electric vehicle maker Tesla.

With demand for AI infrastructure continuing to accelerate worldwide, Samsung's expanded alliance with Broadcom is expected to reinforce its long-term strategy of becoming a leading provider of advanced semiconductor manufacturing and memory solutions for next-generation computing applications.