Samsung Electronics and Broadcom sign five-year, $200 billion semiconductor deal

Samsung Electronics and Broadcom have entered into a five-year agreement for cooperation in the production of AI chips and the supply of advanced storage semiconductors, valued at approximately $200 billion. The announcement was made by Kim Yong-fan, Senior Secretary to the President for Policy for the South Korean Presidential Office, during a press conference in San Francisco.

This collaboration is part of wider semiconductor cooperation initiatives between South Korean and U.S. companies. SK Group also announced plans to supply $750 billion worth of chips to U.S. tech firms, including Nvidia, as Samsung and SK Hynix aim for significant chip partnerships totaling 1,375 trillion Korean won with American tech giants.

The agreement outlines that Samsung will supply Broadcom with advanced storage semiconductors and utilize its foundry services for AI chip manufacturing. This partnership comes amid a surge in demand for AI-related semiconductors, driven by the growth of generative AI applications and the subsequent expansion of data centers.

Broadcom specializes in networking chips, custom AI accelerators, and semiconductor solutions for cloud and data center customers. Samsung Electronics operates across various semiconductor segments, including memory chips, logic chip design, and foundry services.

Specific details regarding the chip models, fabrication nodes, or delivery schedules under the agreement have not yet been publicly disclosed. The collaborations underscore the growing importance of advanced semiconductor manufacturing and supply chains in the face of increasing AI technology demand.