A Samsung flag flies outside the company’s office in Seoul, South Korea, on February 5, 2024.
Jung Sung Joon | Getty Images News | Getty Images
Samsung Electronics announced Saturday that it has signed a deal with a U.S. chip designer. broadcom To expand cooperation across memory chips, contract chip manufacturing, and advanced packaging to exceed $200 billion by 2030.
Winning a long-term production contract from Broadcom, one of the world’s leading custom AI chip design companies, could increase the utilization of Samsung’s advanced manufacturing facilities and help it lead the race to supply AI chips.
“The expanded partnership…reflects Samsung’s focus on supporting customers with end-to-end semiconductor technology across an increasingly diverse range of AI and high-performance computing applications,” the company said in a statement.
The partnership comes as global technology companies increasingly develop their own custom AI accelerators rather than relying solely on general-purpose graphics processors, increasing demand for specialized chip design and manufacturing partnerships.
The memorandum of understanding between the two companies underscores Samsung’s efforts to strengthen its position in AI semiconductors by expanding its long-term relationship with Broadcom as demand for custom AI processors increases.
The next five-year collaboration will combine Broadcom’s expertise in designing application-specific integrated circuits (ASICs), or chips for specific tasks, with Samsung’s manufacturing capabilities.
According to Samsung, the deal will see Broadcom’s next-generation communications chips, designed for high-speed data transfer, manufactured on Samsung’s sub-2 nanometer process technology.
The two companies also plan to collaborate on next-generation high-bandwidth memory (HBM) products.
The partnership could help Samsung strengthen its foundry business as it seeks to close the gap with industry leader TSMC by attracting big technology customers.
Last month, co-CEO and head of chip division Jun Yong-hyun said he had discussed next-generation foundry collaboration with NVIDIA CEO Jensen Huang, including future HBM4E and HBM5 memory products.
Samsung said this year that it expects to win orders for a more advanced 2-nanometer foundry in the near term after discussions with major tech companies. Last year, the company won a $16.5 billion contract to make logic chips for EV manufacturers. tesla.
