Broadcom Signs Multi-Year AI Supply Agreement with Samsung Worth Up to $200 Billion
On July 25, Broadcom (AVGO) signed a memorandum of understanding with Samsung valued at up to $200 billion through 2030. The agreement includes Samsung supplying high-bandwidth memory for Broadcom's AI accelerators and manufacturing chips using its advanced 2-nanometer process technology. This deal addresses key supply chain risks by diversifying Broadcom’s reliance on a single foundry, particularly as demand for AI hardware strains global production capacity. While the $200 billion figure is an estimate rather than firm spending commitments, it reflects long-term collaboration potential and positions Broadcom ahead of competitors vying for limited chip manufacturing resources. The agreement was part of broader South Korea-U.S. business initiatives during President Lee Jae Myung’s Silicon Valley visit, with total projected value near $950 billion across multiple tech firms.