Samsung wins $200 billion contract to supply chips to Broadcom

Samsung Electronics has secured a contract worth over $200 billion (S$258.1 billion) to supply chips to Broadcom as the two companies strive to gain a larger share of the artificial intelligence (AI) infrastructure market.

According to Bloomberg, Samsung said in a statement on Saturday (July 25) that the five-year agreement, which will run until 2030, focuses on providing Broadcom with Samsung's advanced 2-nanometer and below process technologies. The agreement will deepen the strategic cooperation between the two companies in memory chip and wafer foundry technologies.

Facing increasingly fierce competition from rivals such as TSMC , Samsung and its South Korean counterpart SK Hynix are accelerating their efforts to secure AI chip orders globally. South Korea aims to double its memory chip production capacity within five years, ensuring world-class manufacturing capabilities and thus far surpassing other countries.

Samsung indicated that it will support Broadcom's next-generation AI accelerator in the memory chip sector. The collaboration is expected to expand to advanced packaging technologies based on Samsung's 2nm process, including 2.3D and 2.5D integration technologies, to create higher-performance, more energy-efficient AI and networking chips.

South Korean President Lee Jae-myung is currently visiting Silicon Valley to attend an AI summit . Several technology deals were announced during his visit, including collaborations between Nvidia and South Korean companies Naver Corp and SK Hynix.

Source: [Lianhe Zaobao] (https://www.zaobao.com/finance/world/story20260725-9420298)