Samsung Electronics and Broadcom signed a memorandum of understanding at an AI summit in San Francisco on July 24, with the two sides estimating the partnership could top $200 billion over the next five years through 2030. The planned cooperation covers HBM supply, sub-2nm wafer foundry services, and advanced 2.3D and 2.5D packaging.
MOU bundles memory, foundry and packaging
The agreement brings memory, contract manufacturing and packaging into one framework. Samsung is set to supply HBM for Broadcom’s next-generation AI accelerators. Broadcom products, including wireless broadband communication chips, will use Samsung’s sub-2nm process. The scope also extends to 2.3D and 2.5D integration technologies based on 2nm.
Move points to broader sourcing beyond TSMC
The report described Broadcom as the global leader in custom chips, or ASICs, with its advanced-node production long handled by Taiwan Semiconductor Manufacturing Co. TSMC currently holds more than 90% of global advanced process capacity, according to the report. For Broadcom, shifting part of that capacity to Samsung is being viewed as a way to strengthen supply-chain resilience.
Citing a report from Chain News, the article said TSMC has recently been rumored to raise foundry prices by as much as 10% starting in 2027, while high-performance HPC chip orders may face an additional 10% to 15% premium. By comparison, Samsung’s 2nm wafer pricing gap is said to be around one-third. The article added that those quotes have not been confirmed by either side.
Samsung still faces yield questions
The report said Samsung’s global foundry market share has fallen to about 7%, and its 2nm yield has repeatedly come under scrutiny. Against that backdrop, securing Broadcom’s backing could help reshape market views of Samsung’s advanced-process business.
At the same time, the article said the deal is unlikely in the near term to weaken TSMC’s existing customer ties or its technology lead. It framed the MOU more as Broadcom securing insurance for AI chip capacity ahead of 2030. The report also referenced a recent $950 billion semiconductor and AI infrastructure cooperation plan between the United States and South Korea, along with major investment commitments from SK hynix and Nvidia.