Samsung, Broadcom reach $200B AI memory chip deal

Samsung, Broadcom reach $200B AI memory chip deal

Thu, July 30, 2026 at 1:42 PM GMT+3 2 min read

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Dive Brief:

• Samsung Electronics and Broadcom July 25 announced they had signed a memorandum of understanding to work more closely together on memory and foundry technologies to support the next generation of artificial intelligence infrastructure.

• The deal will be worth more than $200 billion over the next five years and will partially involve collaborating on the supply of high-bandwidth memory and other memory solutions to support Broadcom's AI accelerators.

• Foundry operations will focus on using Samsung's two-nanometer and below process technologies for Broadcom's products, including wireless broadband communications. They also may involve Samsung's advanced packaging techniques for more efficient artificial intelligence and networking chips.

Dive Insight:

The deal is expected to give Samsung and Broadcom a leg up as they try to compete with TSMC and others in the intensifying race to dominate the AI hardware market.

"AI is driving unprecedented demand for tightly integrated semiconductor technologies spanning memory, logic and advanced packaging," Young Hyun Jun, vice chairman and CEO of the device solutions division at Samsung Electronics said in a statement. "By expanding our collaboration with Broadcom across these critical technologies, we look forward to delivering greater value to customers while advancing the AI infrastructure of the future."

Earlier this month, Broadcom entered a multiyear, $30 billion deal with Apple to design and produce custom silicon components and wireless connectivity technologies for Apple products. The companies said the arrangement would lead to the production of more than 15 billion U.S.-made chips and support hundreds of American jobs.

In April, Broadcom announced it was teaming up with Meta to produce the industry's first two-nanometer AI compute accelerator in a deal set to last through 2029. The partnership utilizes Broadcom's XPU platform and advanced Ethernet technologies to optimize Meta's AI infrastructure.

In its second-quarter earnings announcement, Broadcom reported record revenue of $22.2 billion, along with record operating profit and free cash flow. It attributed these results to "accelerating growth in AI semiconductor revenue and strong operating leverage."

Samsung likewise reported record quarterly revenue and operating profit in Q1 due to "AI technology innovations and proactive market response," despite the "uncertain macroeconomic environment." Record semiconductor earnings were led by the segment's memory business, which saw "increased sales of high-value-added AI products," Samsung said. It added that it expects strong memory demand to continue in Q2 as a result of AI infrastructure expansion.

The Korea Times recently reported that Samsung, SK Group, Hyundai Motor Group and other Korean companies have agreed to pursue some $950 billion worth of semiconductor and AI partnerships with U.S. companies.

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