Enterprise Technology

Samsung Wins $200 Billion Order to Make AI Chips for Broadcom

Samsung landed a contract worth more than $200 billion to manufacture chips for Broadcom through 2030, centered on its 2-nanometer and below process as the two race for AI market share.

Samsung Electronics won a contract worth more than $200 billion to make chips for Broadcom, as the companies race to capture a larger share of the AI infrastructure market, Bloomberg reported. It is one of the largest chip-supply agreements yet struck in the AI era.

The pact, to run for five years through 2030, will focus on Samsung’s 2-nanometer and below process technologies for Broadcom’s products, the South Korean chipmaker said in a statement on Saturday. The deal expands the two companies’ strategic collaboration across memory and foundry technology.

Samsung and domestic peer SK Hynix are accelerating their global push for AI chip orders amid intensifying competition from rivals such as Taiwan Semiconductor Manufacturing Co. South Korea aims to double its memory production capacity within five years and secure world-class manufacturing capabilities to pull far ahead of competing nations.

What the Samsung Broadcom deal covers

On the memory front, Samsung will support Broadcom’s next-generation AI accelerators, the company said. The collaboration is expected to extend to advanced packaging technologies built on Samsung’s 2nm process, including 2.3D and 2.5D integration, to enable higher-performance and more power-efficient AI and networking silicon.

The focus on sub-2nm nodes is significant. Leading-edge process technology is the battleground where foundries compete for the most demanding AI customers, and a commitment centered on 2nm and below signals Samsung’s intent to challenge TSMC at the cutting edge rather than in older, commoditized nodes.

Advanced packaging is the other frontier. Techniques like 2.5D and 2.3D integration stitch together processors and high-bandwidth memory to squeeze out more performance per watt — increasingly the limiting factor for AI accelerators — making Samsung’s packaging commitment as strategically important as the raw manufacturing.

A diplomatic backdrop for the chip race

The deal was announced against a high-profile diplomatic backdrop. South Korean President Lee Jae Myung is on a visit to Silicon Valley, where he is attending an AI summit, and multiple tech deals are being announced as part of his trip.

Those include partnerships between Nvidia and South Korea’s Naver and SK Hynix, underscoring how the country’s chip champions are being woven into the global AI supply chain through a cluster of simultaneous agreements. The timing turns the Samsung-Broadcom pact into part of a broader statement about Korea’s AI ambitions.

For Broadcom, locking in more than $200 billion of Samsung capacity through 2030 secures a long-term supply of leading-edge silicon for its AI accelerators and networking chips at a moment when manufacturing capacity is among the scarcest resources in technology. For Samsung, it is a marquee validation of its foundry roadmap as it fights to close the gap with TSMC.

FAQ

How big is the Samsung-Broadcom chip deal?

Samsung won a contract worth more than $200 billion to make chips for Broadcom. The pact runs five years through 2030 and focuses on Samsung’s 2-nanometer and below process technologies.

What does the Samsung-Broadcom deal include?

Samsung will support Broadcom’s next-generation AI accelerators on the memory side, and the collaboration is expected to extend to advanced packaging technologies on Samsung’s 2nm process, including 2.3D and 2.5D integration for more power-efficient AI and networking silicon.

Why was the deal announced now?

It was unveiled as South Korean President Lee Jae Myung visited Silicon Valley for an AI summit, where multiple tech deals were announced, including Nvidia partnerships with Naver and SK Hynix.