Samsung secures $200 billion Broadcom AI chip deal

The deal gives Samsung a major boost in its contract chipmaking push.

Reported45 sec read

Jul 25: Samsung secures $200 billion Broadcom AI chip deal

Photo: Jordan Harrison · Unsplash

What happened

Samsung Electronics won a manufacturing partnership with Broadcom for AI chips. The reported deal value is $200 billion. The agreement expands Samsung's contract chip manufacturing business. Broadcom designs custom AI chips for large tech firms.

The context

Cloud providers are building custom AI silicon to lower hardware costs. Broadcom designs many of these custom chips, but needs factory capacity to build them. Samsung wants to challenge TSMC for leadership in contract chipmaking.

Sources

Reuters ↗ via Google News Reported

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