Samsung Electronics said on July 25 it signed a memorandum of understanding with Broadcom, a US chip designer, to expand work on high-bandwidth memory, foundry services, and advanced packaging for AI infrastructure.

The South Korean government estimated the collaboration at more than US$200 billion over five years through 2030, rather than as a disclosed firm order book.

The memorandum covers Samsung supplying HBM for Broadcom’s future AI accelerators, making Broadcom chips on 2-nanometer and smaller process nodes, including wireless broadband communication chips, and handling packaging work, including 2.3D and 2.5D integration.

The pact could help increase use of Samsung’s foundry lines as it tries to narrow the gap with Taiwan Semiconductor Manufacturing Co. (TSMC), which held 70.2% of the global foundry market in Q2 2025, versus Samsung’s 7.2%. It also follows a US$16.5 billion Tesla chip contract announced last year.

Samsung separately said it shipped commercial HBM4 and is expanding capacity.

🔗 Source: Reuters