Samsung Electronics has moved into large-scale cooperation with Broadcom in the AI semiconductor infrastructure market. Samsung said on July 25 it signed a strategic memorandum of understanding with Broadcom at an "AI Summit" held on July 24 local time at The Midway in San Francisco to build next-generation AI infrastructure. The companies will pursue cooperation worth more than $200 billion over five years through 2030 in memory and foundry businesses.

The scope of cooperation spans memory, foundry contract chipmaking and advanced packaging that combines multiple chips into one. A "one-stop turnkey solution" in which one company provides memory, foundry and packaging is the basis of the partnership, the company said. Executives from both sides and government officials attended the event, including Han Jin-man (한진만), head of Samsung Electronics' Foundry Business, and Hock Tan, Broadcom's chief executive.

Global big tech companies have recently been rapidly increasing adoption of AI accelerators, customised chips designed to fit their services. Broadcom has led this customised chip design market. Samsung Electronics will combine its capabilities in memory, manufacturing and packaging to support the performance of accelerators designed by Broadcom. It is a structure that ties design and production into one axis.

In memory, Samsung Electronics will supply Broadcom with HBM, a high-performance memory that stacks multiple layers to increase data processing speed. HBM4, which applies a 1c DRAM with narrower circuit lines and a 4 nm process to the base die, the lower layer that controls signals, began mass production shipments in February. In May, it supplied samples of the next-generation product, HBM4E, to customers, the company said.

In foundry, it will apply processes of 2 nm or below to key products including Broadcom's high-speed data communications semiconductors. As circuit lines narrow, more devices can fit in the same area and power consumption can be reduced. Samsung Electronics will also provide advanced packaging technology based on its 2 nm process to support the performance and power efficiency of Broadcom AI semiconductors.

Samsung Electronics will link the entire process, from the stage of coordinating design and process together to chip design, advanced packaging and mass production. It explained the aim is to shorten product development time. The company plans to use the agreement as a chance to identify business opportunities in AI and high-performance computing markets.

Jun Young-hyun (전영현), head of Samsung Electronics' DS Division, said, "In the AI era, semiconductor solutions that tightly integrate memory, logic and advanced packaging are important." He added, "By expanding cooperation with Broadcom, we will accelerate the development of future AI infrastructure and provide greater value to customers."

Charlie Kawwas, president of Broadcom's Semiconductor Solutions Group, said, "As AI infrastructure expands rapidly, close cooperation across the semiconductor ecosystem is becoming important." He added, "Through cooperation with Samsung Electronics, we will jointly create next-generation solutions optimised for increasingly diverse market demands."