Samsung Electronics Co. announced a contract worth over $200 billion to manufacture chips for Broadcom Inc., set to run for five years through 2030 [1, 2, 3]. The deal focuses on Samsung's advanced 2-nanometer and smaller process technologies for Broadcom's products [1, 2, 3].
The agreement expands strategic cooperation between the two companies across both memory and foundry technology platforms [1, 2, 3]. Samsung will also support Broadcom’s next-generation AI accelerators and collaborate on advanced packaging technologies, including 2.3D and 2.5D integration solutions [2, 3]. Samsung Electronics said the expanded partnership "reflects Samsung’s focus on supporting customers with end-to-end semiconductor technologies across an increasingly diverse range of AI and high-performance computing applications" [3].
This contract aims to boost utilization of Samsung’s cutting-edge manufacturing facilities and strengthen its foundry business to narrow the gap with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC) [3]. Earlier in June 2026, Jun Young-hyun, head of Samsung’s foundry and chip division, held talks with Nvidia CEO Jensen Huang about next-generation foundry cooperation, indicating Samsung’s expanding collaborations in AI and chipmaking [3].
In 2025, Samsung won a $16.5 billion contract to produce logic chips for Tesla, further highlighting its growing role in supplying high-performance semiconductors to leading technology firms [3].
South Korean President Lee Jae Myung visited Silicon Valley in July 2026, attending an AI summit where multiple tech deals were announced, including partnerships involving Nvidia, Naver Corp, and SK Hynix [2]. Both Samsung and SK Hynix are accelerating their global push for AI chip orders facing competition from TSMC and others [2]. South Korea aims to double its memory production capacity within five years and secure world-class manufacturing capabilities [2].
Samsung publicly disclosed the $200 billion Broadcom deal on July 25, 2026 [1, 2, 3]. This multi-year contract solidifies Samsung’s ambitions to expand its foundry and semiconductor market share through advanced technology partnerships.
