According to Samsung, the deal gives the company a key role in Broadcom’s push to build faster and more power-efficient AI chips. Samsung plans to supply High Bandwidth Memory for Broadcom’s next-generation AI accelerators and provide advanced chip production and packaging services.

Samsung Targets a Bigger Share of AI Chip Spending

In addition, the partnership covers Samsung’s 2-nanometer and smaller manufacturing processes, which Broadcom plans to use in products including wireless broadband communications chips. The companies will also work on 2.3D and 2.5D packaging, which combines memory and other chip parts in a way that can improve speed while cutting power use.

The scale of the agreement could help Samsung gain ground as it competes in several aspects of the AI market, including in memory, contract chip production, and advanced packaging, giving it a chance to supply more than one part of Broadcom’s chip designs.

Broadcom, meanwhile, is securing access to the memory and manufacturing tools needed to support larger AI systems. As data centers add more AI computing capacity, chipmakers need closer links between processors, memory, and packaging to limit power use and improve performance.