Samsung Electronics and Broadcom sign a five-year US$20 billion memory chip foundry agreement, and SK Group will supply US$750 billion in chips to US technology companies including Nvidia

IT House reported on July 25 that Kim Yong-beom, director of the Policy Office of the South Korean Presidential Office, said at a press conference held in San Francisco, the United States, on the 24th local time that Samsung Electronics and Broadcom have signed a memorandum of understanding (MOU) for business cooperation. The two parties plan to carry out wafer foundry cooperation around the supply of advanced storage semiconductors and AI chip production worth US$200 billion (approximately 1.36 trillion yuan at current exchange rates) in the next five years. At the same time, SK Group will supply chips worth US$750 billion (IT House Note: The current exchange rate is approximately 5.09 trillion yuan) to US technology companies including Nvidia. Cheong Wa Dae also announced that it will promote Samsung Electronics, SK Hynix and other Korean companies to carry out chip cooperation projects with a scale of US$950 billion (approximately 6.44 trillion yuan at the current exchange rate) with global large-scale semiconductor technology companies, and urge cooperation to build a large-scale AI data center with 2 million GPUs. According to Kim Yong-beom, the cooperation includes Samsung Electronics providing advanced storage semiconductors to Broadcom, while using Samsung's wafer foundry business to participate in AI chip manufacturing. The cooperation period between the two parties is five years, and the scale of the cooperation reaches US$200 billion. Currently, Broadcom mainly provides network chips, customized AI accelerators and related semiconductor solutions, and its customers include enterprises in the cloud computing and data center fields. Samsung Electronics also develops memory chips, logic chip design services and wafer foundry businesses. The collaboration involves AI chip manufacturing. As generative artificial intelligence applications promote the construction of data centers, the demand for AI-related semiconductors continues to grow, and wafer foundries are also strengthening the layout of related capabilities such as advanced processes and high-performance packaging. The South Korean Presidential Office stated that this cooperation between Samsung Electronics and Broadcom is a cooperation project in the semiconductor field between Korean companies and American companies, but the specific chip model, production node and supply schedule have not yet been disclosed in public information. Related reading: "South Korean Official: Samsung and SK Hynix to sign "super-large" chip deal with U.S. company