TLDR
- Samsung and Broadcom signed an MOU to expand their partnership in memory and foundry technologies, valued at over $200 billion through 2030.
- Broadcom stock rose 2.1% to $389.74 in premarket trading Monday.
- The deal focuses on next-generation high-bandwidth memory (HBM) for AI accelerators and Samsung’s 2nm foundry process.
- J.P. Morgan estimates the collaboration implies more than $1 trillion in cumulative Broadcom AI revenue.
- Analysts warn the memory shortage is expected to intensify through 2027 and 2028.
Broadcom stock climbed 2.1% to $389.74 in premarket trading Monday after Samsung Electronics announced the two companies had signed a memorandum of understanding to expand their semiconductor partnership. The deal is expected to cover projects worth more than $200 billion over the next five years, through 2030.
The announcement was made at the AI Summit held at The Midway in San Francisco, with executives from both companies present alongside representatives of the South Korean government.
At the core of the deal is high-bandwidth memory. Samsung and Broadcom plan to work closely on the supply of next-generation HBM products for Broadcom’s future AI accelerators.
Samsung has secured a chip supply agreement worth more than $200B from Broadcom $AVGO.
The 5-year deal runs through 2030 and covers Samsung’s 2nm and sub-2nm foundry processes, memory for Broadcom’s next-gen AI accelerators, & advanced 2.3D and 2.5D packaging. pic.twitter.com/Vt93Ugbsba
— Wall St Engine (@wallstengine) July 25, 2026
On the foundry side, the companies intend to use Samsung’s 2nm and below process technologies for Broadcom products, including Wireless Broadband Communications solutions.
The partnership may also extend to advanced packaging using Samsung’s 2nm process, such as 2.3D and 2.5D integration, which can improve performance and energy efficiency in AI and networking chips.
Samsung co-CEO Young Hyun Jun summed it up plainly: “AI is driving unprecedented demand for tightly integrated semiconductor technologies spanning memory, logic and advanced packaging.”
Broadcom’s semiconductor solutions group president Charlie Kawwas added that closer collaboration across the ecosystem is becoming increasingly important as AI infrastructure scales.
J.P. Morgan’s Take
J.P. Morgan analyst Harlan Sur said the firm expects Samsung to remain Broadcom’s primary HBM supplier. Sur estimated Broadcom’s purchase mix from Samsung will be roughly 90% to 95% memory and 5% to 10% foundry wafer over the life of the deal.
The bank went further, estimating the collaboration could imply more than $1 trillion in cumulative Broadcom AI revenue across both ASICs and networking over the partnership’s duration. That’s a number worth paying attention to.
Memory Crunch Not Going Anywhere
The deal comes as the memory market faces a genuine supply problem. Demand across every category of enterprise compute has surged, pushing prices higher and leaving supply stretched.
Morgan Stanley analyst Stephen Byrd wrote Monday that “longer-term concerns that memory shortage will intensify in 2027 and again in 2028 are still as strong as ever.”
Byrd added: “There isn’t enough memory vs. AI requirements, and we just don’t see that changing.”
His conversations with purchasing contacts in the data center space showed no signs of shortages easing.
Broadcom’s expanded deal with Samsung is a direct response to that pressure — locking in supply and deepening the relationship before conditions get tighter.
Broadcom ended Friday down 2.7% before Monday’s premarket gain on the back of the announcement.
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