Samsung Electronics on Saturday announced a partnership agreement with U.S.-based Broadcom Inc. to cooperate on the development and manufacturing of advanced semiconductors. According to the announcement from Samsung, the agreement covers collaboration on memory chips, contract manufacturing, and advanced packaging technologies.
The partnership is projected to involve business exceeding $200 billion by 2030, Samsung stated. The agreement solidifies the working relationship between the two technology companies, with Samsung set to manufacture chips designed by Broadcom.
Under the terms of the cooperation, Samsung’s foundry division will produce custom silicon for Broadcom, a company that designs semiconductors but does not operate its own manufacturing facilities. This type of arrangement is standard in the industry, where “fabless” design firms like Broadcom rely on manufacturers, or “foundries,” such as Samsung to produce their hardware.
The collaboration will also extend to memory chips, a market where Samsung Electronics is a leading global producer. Specific details on the scope of the memory chip cooperation were not released.
Another key area outlined in the announcement is advanced packaging. This refers to the methods used to integrate multiple electronic components into a single device, a process critical for creating high-performance chips used in artificial intelligence (AI) and other data-intensive applications.
Samsung Electronics, headquartered in Suwon, South Korea, is one of the world’s largest manufacturers of electronic devices and semiconductors. Broadcom Inc., based in San Jose, California, is a global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions.
The announcement did not include a specific timeline for the commencement of joint projects or further financial details of the agreement. Representatives for the companies have not provided additional comments beyond the initial statement.
