Samsung Electronics and Broadcom are strengthening their partnership in memory and semiconductor technology. This move highlights the key role memory supply plays in building AI infrastructure.
The companies signed a memorandum of understanding to expand their collaboration. They expect the deal to be worth more than $200 billion over the next five years, through 2030.
Broadcom shares went up 2.1% in premarket trading on Monday, recovering after falling 2.7% on Friday.
Memory is the main focus of the expanded partnership. The companies said they will work together to supply next-generation high-bandwidth memory for AI applications. Over the next five years, Broadcom will bring its chip design expertise for AI, while Samsung will provide its manufacturing strengths in memory and semiconductor technology.
A Samsung executive said AI is creating record demand for advanced semiconductor technologies that combine memory, logic, and packaging.
J.P. Morgan expects Samsung will stay as Broadcom’s main supplier of high-bandwidth memory. The firm estimates that about 90% to 95% of Broadcom’s purchases from Samsung will be memory, with the rest related to foundry wafer supply. J.P. Morgan also said the partnership could bring Broadcom over $1 trillion in total AI-related revenue from its chip design and networking businesses.
Demand for memory is rising in almost every area of enterprise computing, leading to shortages and higher prices across the industry. Morgan Stanley said there are still concerns that memory shortages could get worse in 2027 and 2028. The firm noted that current supply is not keeping up with AI-driven demand, and talks with data-center buyers show no signs that this gap will close soon.
