Samsung Electronics Co., Ltd. has secured a contract valued at over $200 billion to supply chips to Broadcom, as both companies intensify their efforts to capture a larger share of the artificial intelligence (AI) infrastructure market.

In a statement released Saturday, Samsung Electronics Co., Ltd. said the five-year agreement, which runs through 2030, focuses on providing advanced manufacturing processes at 2 nanometers and below for Broadcom's products. The deal is set to deepen strategic collaboration between the two firms in memory chips and foundry technology.

Facing escalating competition from rivals like TSMC, Samsung Electronics Co., Ltd. and its South Korean peer SK Hynix are accelerating efforts to secure AI chip orders worldwide. South Korea aims to double its memory chip production capacity within five years, ensuring world-class manufacturing capabilities to stay far ahead of other nations.

Samsung noted that in the memory chip segment, the partnership is expected to expand into advanced packaging technologies based on its 2-nanometer process, including 2.3D and 2.5D integration. These innovations are intended to create higher-performance, more energy-efficient AI and networking chips.

South Korean President Lee Jae-myung is currently in Silicon Valley attending an AI summit. During this visit, several technology deals have been announced, including collaborations between Nvidia and South Korean companies Naver and SK Hynix.

This article is for informational purposes only and does not constitute investment advice.