Samsung Electronics wins $200 billion Broadcom AI chip partnership, boosting foundry push

A Samsung flag flies outside the company office in Seoul, South Korea on February 05, 2024. Chung Sung-jun | Getty Images News | Getty ImagesSamsung Electronics said on Saturday it struck a pact with U.S. chip designer Broadcom to widen cooperation across ⁠memory chips, contract chip making and advanced packaging envisaged to exceed $200 billion until 2030.Winning ​long-term production commitments ​from Broadcom, one of ​the world's leading custom AI chip designers, could boost utilization at Samsung's advanced manufacturing facilities to pull ahead in the race to supply AI ⁠chips."The ‌expanded collaboration ... reflects Samsung's focus on supporting ⁠customers with end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications," the company said in a statement.The tie-up comes as global technology ‌companies increasingly develop their own custom AI accelerators, rather than relying solely on general-purpose graphics processors, driving demand for specialized chip ​design and manufacturing partnerships.The two firms' memorandum of understanding underscores Samsung's efforts to beef up its position in AI semiconductors by expanding its long-term ties with Broadcom amid growing demand ⁠for custom AI processors.The next five years of collaboration will combine ‌Broadcom's expertise in designing application-specific integrated circuits (ASICs), or ‌chips for specific tasks, with Samsung's manufacturing capabilities.The deal provides for Broadcom's next-generation communications chips, designed for high-speed data transfer, to be made with Samsung's sub-2-nanometre ⁠process technology, Samsung said.The two will also collaborate on next-generation high-bandwidth memory (HBM) ⁠products.The partnership could help strengthen Samsung's foundry business, as ⁠it seeks to narrow the gap with industry leader TSMC by wooing major technology customers.Last month, co-CEO and ​chip division head Jun Young-hyun said ‌he discussed next-generation foundry cooperation with Jensen Huang, chief executive of Nvidia, including future HBM4E and HBM5 memory products.Samsung said this year it expected to secure more advanced 2-nanometre foundry orders in the near term after discussions with ​major tech companies. Last year, it ‌won a $16.5 billion contract to make logic chips for EV maker Tesla. ​‌

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