Samsung and Broadcom Forge $200 Billion AI Chip Partnership Through 2030
The memorandum of understanding covers memory, foundry, and advanced packaging as both companies seek to diversify beyond TSMC's dominance.
Samsung Electronics and Broadcom signed a memorandum of understanding at an AI Summit in San Francisco on July 24, 2026, establishing a collaborative framework for an integrated AI semiconductor supply chain through 2030. The companies project the partnership could exceed $200 billion over five years, though the MOU represents a statement of intent rather than binding purchase commitments.
A One-Stop Solution for AI Chips
Under the agreement, Samsung will supply High Bandwidth Memory (HBM) for Broadcom's AI accelerators and networking chips, manufacture products using 2nm and sub-2nm foundry processes, and provide advanced packaging technologies including 2.3D and 2.5D integration. The deal gives Broadcom a critical alternative to Taiwan Semiconductor Manufacturing Company, which currently dominates advanced chip production.
The announcement came during a summit hosted by South Korean President Lee Jae Myung, where Seoul and Washington unveiled roughly $950 billion in semiconductor deals between South Korean and American companies.
Strategic Shifts on Both Sides
For Broadcom, the partnership provides supply chain resilience by diversifying manufacturing capacity away from exclusive reliance on TSMC. The company has become a leader in custom AI accelerators for hyperscalers like Google and Meta, as the market gradually shifts from Nvidia's GPUs toward application-specific designs.
For Samsung, securing a major designer's commitment validates its 2nm process node and advanced packaging capabilities. The South Korean chaebol has been attempting to close the gap with TSMC in leading-edge foundry work while maintaining its position in memory markets.
"AI is driving unprecedented demand for tightly integrated semiconductor technologies spanning memory, logic and advanced packaging," said Young Hyun Jun, Vice Chairman and CEO of Samsung Electronics' Device Solutions Division.
Charlie Kawwas, President of Broadcom's Semiconductor Solutions Group, added: "As AI infrastructure continues to scale, close collaboration across the semiconductor ecosystem becomes increasingly important."
What Remains Unclear
The companies did not disclose specific breakdowns of the $200 billion projection between memory, foundry, and packaging services. Minimum purchase volumes, cancellation terms, and mass production timelines for Broadcom products at Samsung facilities were not detailed in the announcement.
Samsung's official press release references collaboration on "High Bandwidth Memory" without specifying particular generations such as HBM4 or HBM4E, which appeared in secondary reporting but not in the primary announcement.
The partnership arrives as AI chip demand continues outpacing supply, with hyperscalers increasingly seeking custom silicon solutions and multiple manufacturing sources to reduce concentration risk in the semiconductor supply chain.