Broadcom has secured a $200 billion semiconductor supply agreement with Samsung through 2030, marking one of the largest long-term chip deals in the industry and strengthening the chipmaker’s position in AI infrastructure.
Samsung and Broadcom signed the memorandum of understanding on July 25, 2026, covering memory chips, 2-nanometer foundry services, and advanced packaging for custom AI accelerators. The five-year partnership combines Broadcom’s expertise in designing application-specific integrated circuits (ASICs) with Samsung’s advanced manufacturing capabilities.
The deal spans next-generation communications chips designed for high-speed data transfer, produced on Samsung’s sub-2-nanometer process technology, along with collaboration on high-bandwidth memory (HBM) products. According to Reuters, winning long-term production commitments from Broadcom, one of the world’s leading custom AI chip designers, could boost utilization at Samsung’s advanced manufacturing facilities.
Broadcom stock climbed about 3% on Monday, July 28, following the announcement, reflecting investor confidence in the company’s growing order book for AI chips. The move underscores Broadcom’s momentum after securing a $30 billion deal with Apple earlier in July, also running through 2031 and focused on custom silicon components for U.S.-made chip production.
The Samsung partnership addresses a critical challenge in the semiconductor industry: the race to supply custom chips for artificial intelligence applications. As major technology companies increasingly develop their own AI accelerators rather than relying solely on general-purpose graphics processors, demand for specialized chip design and manufacturing partnerships has surged. Samsung said in a statement that the expanded collaboration reflects its focus on supporting customers with end-to-end semiconductor technologies across AI and high-performance computing applications.
The deal positions Samsung in its ongoing competition with Taiwan Semiconductor Manufacturing Company (TSMC) for foundry business. While TSMC leads in 2-nanometer yield and ramp-up speed, Samsung has been aggressively pursuing major customers for its advanced logic chips. Last year, Samsung won a $16.5 billion contract with Tesla for logic chips, signaling its ability to land major foundry wins in the AI era.
Sources
- Reuters — Samsung and Broadcom’s memorandum of understanding, deal scope, and strategic implications for Samsung’s foundry business
- Yahoo Finance — Broadcom stock reaction (3% climb) to the Samsung deal announcement
- Fortune — Deal details including 2-nanometer process technology and five-year timeline
- CNBC — Apple-Broadcom $30 billion deal comparison and Broadcom’s momentum in custom chip partnerships
