Samsung Electronics and Broadcom have signed a memorandum of understanding to enhance their collaboration in memory, foundry manufacturing, and advanced packaging, with expected expenditures exceeding $200 billion by 2030. This agreement comes amid a pressing demand for high-bandwidth memory (HBM) from AI chipmakers.
The announcement was made during an AI summit in San Francisco, attended by South Korean President Lee Jae Myung and representatives from major AI firms. The South Korean presidential office noted that the collaboration with Broadcom aims to bolster the local AI semiconductor industry.
While Samsung acknowledged the potential scale of the partnership, neither the company nor the South Korean presidential office disclosed specifics regarding annual supply figures, pricing, shipment timelines, or the allocation of funds across memory, foundry, and advanced packaging. The projected $200 billion appears to represent a long-term strategy rather than confirmed revenue.
Broadcom, which does not manufacture memory chips, is one of the largest designers of custom AI accelerators globally. Samsung stated that the partnership would facilitate Broadcom’s next-generation AI chips through advancements in HBM, foundry manufacturing, and advanced packaging. Broadcom is currently involved in developing Google’s Tensor Processing Units and Meta’s MTIA accelerators, both reliant on substantial HBM usage.
The Samsung-Broadcom deal could significantly impact the AI sector, as HBM remains a critical and constrained element in AI hardware availability. The partnership could secure a manufacturing capability that may benefit other chip developers.
Demand for memory chips is reportedly surging. SK Group Chairman Chey Tae-won mentioned that Broadcom has persistently requested what he termed an astonishing volume of memory chips, highlighting the efforts of hyperscale AI clients to ensure adequate supplies.
Industry data supports this trend. A report from TrendForce indicated that SK hynix maintains a leading position in the HBM market, while Samsung has experienced rapid recovery due to increased shipments of HBM3E and the upcoming launch of HBM4 commercialization.
