Samsung’s $200B AI bet raises the stakes for Nvidia suppliers

Samsung Electronics and Broadcom have entered into a memorandum of understanding (MOU) in order to strengthen their collaboration in the fields of memory, foundry manufacturing and advanced packaging. They expect to spend more than $200 billion as a result of their partnership till 2030. The agreement comes at a time when many AI chipmakers are trying to secure their supplies of high-bandwidth memory (HBM), one of the key challenges in the industry.

The agreement was made public at an AI summit held in San Francisco where South Korean President Lee Jae Myung and representatives of prominent AI firms took part. The South Korean presidential office regarded the Broadcom collaboration as one of the initiatives to enhance the local AI semiconductor industry.

While Samsung acknowledged the anticipated financial projections and scale of the partnership, the firm and the President’s office of South Korea have declined to specify how many billions they would supply each year, what the prices would be, when shipments would be scheduled, or how the amount would be split across memory, foundry, and advanced packaging. Due to the lack of any order or buying agreement, the estimated value of $200 billion would represent a mere long-term strategy, rather than already determined revenues.

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