TL;DRSamsung signs MOU with Broadcom worth more than $200 billion for AI memory, foundry and packaging through 2030
Samsung Electronics and Broadcom have signed a memorandum of understanding worth more than $200 billion spanning memory chips, foundry manufacturing and advanced packaging for artificial intelligence semiconductors. The deal, announced on Friday at an AI summit in San Francisco, runs for five years through 2030 and covers some of the most critical layers of the AI chip supply chain. It is one of the largest semiconductor partnerships ever disclosed, though as an MOU it represents a statement of intent rather than a binding contract.
On the memory side, Samsung will supply Broadcom with next-generation high-bandwidth memory, including HBM4 and HBM4E chips, for use in Broadcom’s AI accelerators. In foundry, Samsung will manufacture Broadcom products using two-nanometer and smaller process technologies at its campus in Pyeongtaek, South Korea. The collaboration also extends to advanced packaging that integrates memory and logic more tightly, a technique increasingly central to squeezing more performance out of AI silicon.
Broadcom designs custom AI chips for hyperscalers including Google, Meta and others that want silicon tailored to their specific workloads rather than buying off-the-shelf GPUs from Nvidia. The company extended its AI chip partnership with Meta through 2029 in April, and CEO Hock Tan recently said surging AI revenue has made organic growth more attractive than acquisitions. By diversifying manufacturing to Samsung, Broadcom gains supply chain resilience beyond its existing reliance on TSMC, which controls more than 90 percent of leading-edge chip production.
