Samsung to Produce Chips for Broadcom Worth $200 Billion by 2030
Samsung Electronics has signed an agreement with Broadcom to expand cooperation in memory chips, contract manufacturing (Foundry), and advanced packaging. The deal is expected to reach $200 billion by 2030.
Samsung Electronics has signed an agreement with the American company Broadcom to expand cooperation in the fields of memory chips, contract chip manufacturing (Foundry), and advanced packaging. The deal is expected to reach a value of more than 200 billion dollars by 2030, according to Reuters.
The agreement stipulates that Broadcom's next-generation communication chips, designed for high-speed data transmission, will be manufactured using Samsung's 2-nanometer technology and below. The two companies will also collaborate on the development of next-generation high-bandwidth memory (HBM) products.
The partnership comes against the backdrop of a growing trend among global technology companies to develop their own customized artificial intelligence (AI) accelerators instead of relying solely on general-purpose graphics processing units (GPUs) — a trend driving demand for collaboration in the design and manufacturing of specialized chips. The memorandum of understanding between the companies highlights Samsung's efforts to strengthen its position in the AI semiconductor sector by expanding its long-term ties with Broadcom amid the rising demand for custom AI processors.
Samsung and its local competitor SK Hynix are accelerating their global efforts to secure orders for AI chips, amid increasing competition from rivals such as Taiwan's TSMC. South Korea aims to double its memory production capacity within five years and secure world-class manufacturing capabilities to create a significant gap over competing nations.
Samsung stated that it expects to secure additional orders for the production of advanced 2-nanometer chips in the near term, following negotiations with major technology companies. Last year, the company won a 16.5 billion dollar contract to produce logic chips for the electric vehicle manufacturer Tesla. The President of Korea, Lee Jae-myung, is currently visiting Silicon Valley, where he is attending an artificial intelligence conference.
