Samsung Electronics Co. has formed a strategic partnership with U.S. chip designer Broadcom Inc. worth $200 billion to build an integrated, one-stop artificial intelligence (AI) semiconductor supply chain through 2030. The two companies signed a memorandum of understanding (MOU) to build next-generation AI infrastructure at the San Francisco AI Summit.
The partnership will provide Broadcom with an integrated supply solution combining Samsung’s HBM4 and HBM4E memory, sub-2-nanometer foundry process and advanced packaging technologies for next-generation AI accelerators and high-speed networking chips.
The companies plan to expand collaboration across memory, foundry and packaging over the next five years. This partnership reflects a broader shift in the AI semiconductor market from Nvidia Corp.’s graphics processing unit (GPU)-based systems toward custom AI accelerators, or application-specific integrated circuits (ASICs), developed by major technology companies.
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Broadcom’s AI semiconductor revenue reached $10.8 billion in the second quarter of fiscal 2026, up 143 percent from a year earlier. With Broadcom’s AI chip revenue projected to reach $16 billion in the third quarter, demand for custom accelerators and AI networking chips is expected to continue growing.
The partnership is expected to provide Samsung with several benefits. Diversifying its HBM customer base could reduce reliance on any single customer, while successfully mass-producing sub-2-nanometer chips for a major client could validate its manufacturing yields and process reliability, helping it secure additional foundry orders.
Bundling memory, foundry manufacturing and advanced packaging into a single offering is also expected to strengthen customer relationships beyond individual product sales, while closer collaboration could shorten development cycles and reduce power consumption.
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The partnership has also fueled expectations that Samsung could emerge as an alternative to the advanced foundry and packaging ecosystem currently dominated by Taiwan Semiconductor Manufacturing Co. In the AI accelerator market, where HBM integration and advanced packaging are increasingly critical to overall performance, Samsung’s entry could help ease manufacturing bottlenecks, reduce supply chain concentration and improve price and delivery competitiveness.
According to the report, the partnership lays the groundwork for Samsung to become an integrated AI semiconductor provider spanning memory and foundry, though its success will depend on customer qualification, 2-nanometer yields, advanced packaging capacity and final order volumes.
