Samsung bags $200B chip supply deal from Broadcom
What's the story
Samsung Electronics has bagged a massive contract worth over $200 billion from Broadcom. The five-year deal, which runs through 2030, will see Samsung manufacture chips using its advanced 2-nanometer and smaller process technologies for Broadcom's products. The partnership further strengthens the strategic alliance between the two companies in memory and foundry technology.
Technological collaboration
Deal to include next-gen AI accelerators
As part of the deal, Samsung will also support Broadcom's next-generation AI accelerators.
The partnership is likely to include advanced packaging technologies based on Samsung's 2nm process, such as 2.3D and 2.5D integration.
These innovations are expected to deliver high-performance and power-efficient AI and networking silicon solutions.
National strategy
South Korea's push for AI chip orders
Along with Samsung, SK Hynix is also pushing for global AI chip orders amid stiff competition from Taiwan Semiconductor Manufacturing Company.
The South Korean government wants to double memory production capacity in five years and establish world-class manufacturing capabilities.
This is all part of a larger plan to outpace rival nations in the fast-evolving field of artificial intelligence technology.