TSMC is the undisputed king of the global semiconductor market, and to extend its lead, it has succeeded in developing cutting-edge lithography and advanced packaging. Samsung certainly has a lot of ground to cover in this aspect, but its strengths lie in being able to secure partnerships beyond its 2nm contracts, which have ultimately led to a mammoth $200 billion agreement with Broadcom to build next-generation AI infrastructure over the next five years.
The major payoff will include Samsung’s 2nm process and HBM4 memory that Broadcom will use for its AI accelerators
Given that memory and storage have already established themselves as the leading revenue generators for companies like Samsung, SK Hynix, Micron, and others, the Korean giant’s dominance in this area has landed it a deal with Broadcom, where the two entities signed a memorandum of understanding (MOU). The partnership will take on the ASIC market, with Broadcom leveraging Samsung’s HBM4 memory for use in its AI accelerators.
To strengthen the partnership, Samsung’s next-generation HBM4E memory will eventually enter the production ramp to boost competitiveness. As for the 2nm GAA node, Samsung will apply its lithography to Broadcom’s core products, which include high-speed data communication chips. It should also be mentioned that the multi-billion-dollar deal isn’t going to be a simple contract, because Samsung’s involvement helps to reduce Broadcom’s chip design and development lead times.
From the design stage to optimization, packaging, and finally volume production, Samsung is expected to perform a ton of hand-holding for Broadcom, but that’s where the majority of the payout likely comes from. TSMC’s 2nm process might have already contributed to 3 percent of its Q3 2026 revenue, but Samsung’s foundry not only offers the newest manufacturing processes but a host of DRAM and storage options, giving the manufacturer a distinct advantage by offering flexibility to clients.
TSMC’s primary strength is its pure-play foundry model, which wouldn’t have offered Broadcom the same integrated dynamic. The combination of Samsung’s 2nm node and 1c DRAM production gives it the perk of co-optimizing the chip’s physical design, power delivery, and thermal performance. For TSMC to provide the same advantages, it would have to partner with external memory suppliers, bringing friction and integration risks to the table.
Even though having a multitude of suppliers is always beneficial, Broadcom’s partnership with Samsung minimizes supply chain bottlenecks and lead times, reducing the time it takes for the chip to reach completion.
News Source: Samsung Newsroom
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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