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Broadcom signs $200 billion Samsung memory deal to secure AI chip supply
Broadcom expects AI semiconductor revenue to rise more than 200% year over year to $16 billion, and the agreement targets High Bandwidth Memory amid an HBM shortage and price volatility.
Broadcom has announced a five-year agreement with Samsung Electronics valued at over $200 billion for the supply of memory chips, with the company positioning the deal as a way to lock in critical components for its AI accelerator roadmap, according to MarketBeat Ratings.
The agreement includes a collaboration focused on supplying industry-leading memory solutions, including High Bandwidth Memory, described as supporting Broadcom’s next-generation AI accelerators.
MarketBeat Ratings noted the backdrop is a sharp HBM shortage and broader memory constraints, which makes securing supply a key requirement for capturing Broadcom’s AI opportunity.
The same coverage said Broadcom expects its AI semiconductor revenue to grow by more than 200% year over year to $16 billion, while also pointing to reported HBM price increases of 20% in Q1 as an example of why the multi-year structure could help manage volatility.