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Broadcom (AVGO) just made one of the largest deals to secure its artificial intelligence (AI) chip supply. On July 25, the company signed a memorandum of understanding with Samsung worth more than $200 billion, running through 2030. Samsung will supply high-bandwidth memory (HBM) for Broadcom’s next-generation AI accelerators, and manufacture Broadcom chips on its 2-nanometer process. That covers two of the most valuable layers in the AI supply chain at once.
However, it is worth noting that this is an MOU, not a firm order. Samsung’s own announcement described the figure as an estimate. So, the $200 billion is a projection of what the collaboration could be worth over the next five years, not spending that Broadcom has committed. The one risk for Broadcom is delivery. Samsung’s 2nm line is not yet running at full yield, so the company is betting on capacity that still has to be proven.
