Samsung Lands $200 Billion Broadcom Chip Manufacturing Deal

Samsung Electronics has secured a contract worth more than $200 billion to manufacture chips for Broadcom Inc., strengthening its position in the rapidly expanding artificial intelligence semiconductor market, Hooyeon Kim reported for Bloomberg News.

Samsung will manufacture Broadcom's next-generation AI chips under a long-term technology partnership. [Photo: Samsung]

The five-year agreement, which runs through 2030, will focus on Samsung's 2-nanometer and more advanced manufacturing processes for Broadcom's next-generation products.

Samsung said the agreement expands the companies' strategic partnership across both memory and foundry technologies.

Samsung and fellow South Korean chipmaker SK Hynix are accelerating efforts to capture a larger share of AI semiconductor demand while competing with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC).

Under the agreement, Samsung will manufacture chips for Broadcom's next-generation AI accelerators and collaborate on advanced packaging technologies based on its 2-nanometer process.

The partnership will also include 2.3D and 2.5D advanced packaging technologies designed to improve the performance and energy efficiency of AI and networking chips.