A Samsung flag flies outside the company office in Seoul, South Korea on February 05, 2024. <\/p>\n
Chung Sung-jun | Getty Images News | Getty Images<\/p>\n
Samsung Electronics said on Saturday it struck a pact with U.S. chip designer Broadcom<\/a> to widen cooperation across \u2060memory chips, contract chip making and advanced packaging envisaged to exceed $200 billion until 2030.<\/p>\n Winning \u200blong-term production commitments \u200bfrom Broadcom, one of \u200bthe world’s leading custom AI chip designers, could boost utilization at Samsung’s advanced manufacturing facilities to pull ahead in the race to supply AI \u2060chips.<\/p>\n “The \u200cexpanded collaboration … reflects Samsung’s focus on supporting \u2060customers with end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications,” the company said in a statement.<\/p>\n The tie-up comes as global technology \u200ccompanies increasingly develop their own custom AI accelerators, rather than relying solely on general-purpose graphics processors, driving demand for specialized chip \u200bdesign and manufacturing partnerships.<\/p>\n The two firms’ memorandum of understanding underscores Samsung’s efforts to beef up its position in AI semiconductors by expanding its long-term ties with Broadcom amid growing demand \u2060for custom AI processors.<\/p>\n The next five years of collaboration will combine \u200cBroadcom’s expertise in designing application-specific integrated circuits (ASICs), or \u200cchips for specific tasks, with Samsung’s manufacturing capabilities.<\/p>\n The deal provides for Broadcom’s next-generation communications chips, designed for high-speed data transfer, to be made with Samsung’s sub-2-nanometre \u2060process technology, Samsung said.<\/p>\n The two will also collaborate on next-generation high-bandwidth memory (HBM) \u2060products.<\/p>\n The partnership could help strengthen Samsung’s foundry business, as \u2060it seeks to narrow the gap with industry leader TSMC by wooing major technology customers.<\/p>\n Last month, co-CEO and \u200bchip division head Jun Young-hyun said \u200che discussed next-generation foundry cooperation with Jensen Huang, chief executive of Nvidia, including future HBM4E and HBM5 memory products.<\/p>\n Samsung said this year it expected to secure more advanced 2-nanometre foundry orders in the near term after discussions with \u200bmajor tech companies. Last year, it \u200cwon a $16.5 billion contract to make logic chips for EV maker Tesla<\/a>. \u200b\u200c<\/p>\n