Samsung, Broadcom sign $200bn AI chip MOU

Samsung Electronics and Broadcom have entered into a new memorandum of understanding (MOU) to broaden their strategic collaboration in semiconductors. The agreement covers memory, contract chip manufacturing and advanced packaging, aligning the two companies around key technologies for artificial intelligence and high-performance computing.

The collaboration is estimated to exceed $200 billion across memory and foundry over the next five years through 2030. The MOU is described as a multi-year strategic partnership aimed at supporting next-generation AI infrastructure and advanced networking silicon.

A central element of the partnership is Samsung’s role as a supplier of High Bandwidth Memory (HBM) for Broadcom’s next-generation AI accelerators. HBM is used to support the high data throughput required in AI processing and high-performance computing workloads.

By aligning HBM supply with Broadcom’s accelerator roadmap, the companies aim to coordinate memory and processing capabilities for upcoming AI systems. This arrangement positions Samsung as a key memory partner for Broadcom’s future accelerator products.

Under the MOU, Broadcom’s next-generation communications chips will be manufactured using Samsung’s sub-2-nanometre process technologies. This brings Broadcom’s advanced networking and communications designs onto Samsung’s most advanced foundry nodes.

The foundry component of the deal reinforces Samsung’s push in contract chip manufacturing by adding Broadcom’s high-end communications products to its pipeline. The expected scale of the collaboration across memory and foundry supports Samsung’s strategy to grow its advanced process business.

The agreement also extends to advanced semiconductor packaging, including 2.3D and 2.5D integration technologies. These packaging approaches are used to combine multiple chips or chiplets in compact, high-performance configurations suited to AI and networking applications.

Joint work on advanced packaging is intended to complement the memory and foundry elements of the partnership, enabling end-to-end solutions from wafer fabrication through to final package integration for Broadcom’s next-generation devices.

The MOU was announced at the AI Summit in San Francisco, held at The Midway venue. The event was attended by senior executives from both companies and representatives of the Korean government, underscoring the strategic importance of the collaboration.

Participants included Jinman Han, President and Head of Samsung Foundry, and Broadcom Chief Executive Officer Hock Tan. Samsung vice chairman Young Hyun Jun said the expanded collaboration reflects Samsung’s focus on providing end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications.