Samsung Courts AI Customers With HBM4 in Challenge to TSMC

Broadcom is a major supplier of custom silicon and accelerators used in artificial intelligence infrastructure, with advanced chip production historically concentrated at Taiwan Semiconductor Manufacturing Co. A partnership spanning Samsung Electronics’ HBM4 high-bandwidth memory, 2-nanometer foundry process and advanced packaging would give Broadcom an alternative source of capacity while deepening semiconductor supply-chain ties between the US and South Korea.

As of July 27, 2026, reports said Samsung Electronics and Broadcom had signed a five-year memorandum of understanding with a potential value of as much as $200 billion. Samsung would supply HBM4 for Broadcom’s next-generation AI accelerators and manufacture related chips using its 2-nanometer process, alongside broader packaging cooperation. The disclosed figure represents the pact’s estimated ceiling, while binding order volumes and production timelines have yet to be confirmed.

Samsung Electronics is working to narrow the gap with TSMC in semiconductor foundry manufacturing. The 4-nanometer node is an important mature process for high-performance computing chips such as AI accelerators, and yields directly affect costs, delivery schedules and customers’ willingness to adopt it. Crossing the 80% threshold gives Samsung a foundation to take on large orders and improve capacity utilization.

Recent developments show that Samsung’s 4-nanometer process yield has exceeded 80%, helping it secure orders from customers including U.S. AI chip company Groq. Samsung is also preparing for HBM4 mass production, aiming to combine its foundry and high-bandwidth memory strengths and return its non-memory business to profitability as early as the second half of 2026. The reports did not disclose the value of the orders.