Samsung wins $200 billion order to supply chips to Broadcom

Samsung Electronics Co. won a contract worth more than $200 billion to make chips for Broadcom Inc., as the companies race to win a larger share of the AI infrastructure market.

The pact, to run for five years through 2030, will focus on Samsung’s 2-nanometer and below process technologies for Broadcom’s products, the South Korean chipmaker said in a statement on Saturday. The deal expands the two companies’ strategic collaboration across memory and foundry technology.

Samsung and domestic peer SK Hynix Inc. are accelerating their global push for artificial intelligence chip orders amid intensifying competition from rivals such as Taiwan Semiconductor Manufacturing Co. South Korea aims to double its memory production capacity within five years and secure world-class manufacturing capabilities to pull far ahead of competing nations.

Read More: Samsung, SK to Spend $880 Billion to Drive Korea’s AI Lead

On the memory front, Samsung will support Broadcom’s next generation AI accelerators, the company said. The collaboration is expected to extend to advanced packaging technologies built on Samsung’s 2nm process, including 2.3D and 2.5D integration, to enable higher-performance and more power-efficient AI and networking silicon.

South Korean President Lee Jae Myung is on a visit to Silicon Valley, where he is attending an AI summit. Multiple tech deals are being announced as part of his trip, including partnershipsbetween Nvidia Corp. and South Korea’s Naver Corp. and SK Hynix Inc.