Samsung Elec wins $200 billion Broadcom AI chip partnership, boosting foundry push

The deal provides for Broadcom's next-generation communications chips, designed for high-speed data transfer, to be made with Samsung's sub-2-nanometre process technology, Samsung said.

The two will also collaborate on next-generation high-bandwidth memory (HBM) products.

The partnership could help strengthen Samsung's foundry business, as it seeks to narrow the gap with industry leader TSMC by wooing major technology customers.

Last month, co-CEO and chip division head Jun Young-hyun said he discussed next-generation foundry cooperation with Jensen Huang, chief executive of Nvidia, including future HBM4E and HBM5 memory products.

Samsung said this year it expected to secure more advanced 2-nanometre foundry orders in the near term after discussions with major tech companies. Last year, it won a $16.5-billion contract to make logic chips for EV maker Tesla.