Samsung wins $200 billion five-year deal from Broadcom, focusing on 2nm AI chip foundry

Kuai Technology reported on July 26 that according to media reports, Samsung Electronics and Broadcom reached a chip foundry agreement worth more than US$200 billion. The two parties are accelerating their competition for a larger share of the artificial intelligence infrastructure market. Samsung Electronics issued a statement on July 25 saying that the agreement is for a period of five years and will last until 2030. It will mainly use Samsung’s advanced process technology of 2 nanometers and below to supply chips to Broadcom. This collaboration further expands the two companies' strategic partnership in the memory and foundry fields. Under increasing pressure from competitors such as TSMC, Samsung and its Korean counterpart SK Hynix are actively grabbing AI chip orders globally. The South Korean government has set a goal to double memory production capacity within five years and build world-class manufacturing capabilities to ensure it stays ahead of global competition. Samsung further stated in the statement that it will provide memory support for Broadcom's next-generation AI accelerator, and plans to extend cooperation to advanced packaging based on 2-nanometer processes, including 2.3D and 2.5D integration technologies, aiming to achieve higher performance, lower power consumption AI and network chips. In addition, South Korean President Lee Jae-myung is visiting Silicon Valley and attending the Artificial Intelligence Summit. During the visit, a number of technological cooperation agreements were reached, including cooperation projects between NVIDIA and South Korea's Naver and SK Hynix.