Samsung and Broadcom Sign $200 Billion Chip Deal
Samsung Electronics and Broadcom have signed a memorandum of understanding (MOU) worth more than $200 billion spanning memory chips, foundry manufacturing, and advanced packaging for artificial intelligence semiconductors. The deal, announced on Friday at an AI summit in San Francisco, runs for five years through 2030.
Key Aspects:
- Memory Supply: Samsung will supply Broadcom with next-generation high-bandwidth memory, including HBM4 and HBM4E chips, for use in their AI accelerators.
- Foundry Manufacturing: Samsung will manufacture Broadcom products using two-nanometer and smaller process technologies at its campus in Pyeongtaek, South Korea.
- Advanced Packaging: The collaboration extends to advanced packaging that integrates memory and logic more tightly.
Background:
- This partnership diversifies Broadcom’s manufacturing beyond their existing reliance on TSMC, which controls over 90% of leading-edge chip production.
- For Samsung, the deal addresses a credibility gap in its foundry business, aiming to enhance investor confidence following yield challenges with its two-nanometer process.
In Context:
The $200 billion MOU is part of a broader package of semiconductor deals worth roughly $950 billion between South Korean and American companies, announced during an AI summit hosted by South Korean President Lee Jae Myung. This follows Seoul’s $880 billion domestic investment plan in technology.