Nvidia CEO courts South Korea with TV, baseball appearances

Nvidia CEO Jensen Huang is making his second visit to South Korea in seven months, engaging not only with top executives in the memory chip and robotics sectors but also with the public through a baseball game first pitch and a TV talk show appearance. This high-profile charm offensive underscores South Korea's critical and growing importance in the global artificial intelligence landscape.

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Nvidia’s dependence on South Korean suppliers is rising.

South Korea's dominance in memory chip production, with Samsung Electronics and SK Hynix supplying approximately 70 percent of the memory required for AI chips, positions the country as indispensable to Nvidia's operations. Furthermore, South Korea's manufacturing prowess and advancements in robotics make it a prime candidate for developing and testing "physical AI", where artificial intelligence is integrated into robots, vehicles, and industrial settings.

Analysts note Nvidia's increasing reliance on South Korean suppliers. Jeff Kim of KB Securities highlighted that Huang "needs a manufacturing site for physical AI," and "South Korea is emerging as a perfect testbed." The nation is also a significant customer, with Nvidia having pledged to supply over 260,000 advanced AI chips to the South Korean government and major corporations.

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Huang “needs a manufacturing site for physical AI”, Kim said. “South Korea is emerging as a perfect testbed.”

South Korea's strategic value has been amplified by trade tensions impacting semiconductor sales to China. "South Korean companies are running high-end factories, which need a lot of these kinds of chips," noted Seung-yub Lee, a fund manager at Quad Investment Management. President Lee Jae Myung has prioritized AI investment, aiming to elevate South Korea into a global AI powerhouse amidst demographic challenges.

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South Korean companies are running high-end factories, which need a lot of these kinds of chips.

Huang himself acknowledged Korea's vital role, stating, "Korea is a critical part of our ecosystem." He specifically pointed to robotics as an area for potential investment, citing Korea's manufacturing base and population dynamics. His public appearances, including an upcoming spot on the popular talk show "You Quiz on the Block" and the ceremonial first pitch at a Doosan Bears baseball game, aim to connect with the country's 50 million residents and further solidify Nvidia's ties.

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Korea is a critical part of our ecosystem.