Samsung, SK to partner with US tech giants on $950 billion AI chip initiative

South Korean semiconductor leaders Samsung Electronics and SK Hynix are embarking on a monumental collaboration with U.S. tech giants, including Nvidia, potentially worth $950 billion. This significant partnership, solidified during President Lee Jae-myung's visit to the United States, aims to bolster South Korea's position as an indispensable hub in the global artificial intelligence supply chain. The move comes as the industry grapples with concerns about a potential 'peak out' in the semiconductor market, prompting a strategic 'AI alliance' between domestic firms and major U.S. technology players.

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South Korea will emerge as a crucial, irreplaceable nation in the global AI supply chain.

President Lee Jae-myung declared during the 'San Francisco AI Declaration' that South Korea would emerge as a crucial, irreplaceable nation in the global AI supply chain. Kim Yong-beom, the presidential secretary for policy, detailed the agreements, stating that domestic and global tech companies have committed to semiconductor collaborations totaling $950 billion. He characterized these as long-term purchase agreements, ensuring firm orders for Korean companies.

The $950 billion figure encompasses several key deals: a $200 billion memorandum of understanding between Samsung Electronics and Broadcom for advanced memory semiconductor supply and AI chip production, and a $500 billion letter of intent between SK Group and Nvidia for cooperation. Additionally, SK Group has secured a $250 billion agreement with Microsoft, Anthropic, and Amazon Web Services (AWS) for long-term semiconductor supply. The SK-Nvidia agreement reportedly includes SK Group's purchase of Nvidia's AI accelerators.

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Domestic companies and global big tech firms have decided to pursue semiconductor collaborations totaling $950 billion. This is a form of long-term purchase agreement, and Korean companies have secured firm advance orders.

Beyond chip supply, the initiative includes a significant push into AI data centers, with plans for 5 GW of capacity and approximately 2 million GPUs. President Lee emphasized South Korea's commitment to becoming a reliable AI semiconductor production base and supply chain partner, leveraging its world-class memory chip capabilities. The President also held individual meetings with CEOs of major tech firms like Nvidia, OpenAI, Anthropic, and Broadcom, underscoring the collaborative spirit. Nvidia CEO Jensen Huang remarked that it is truly the golden age for South Korea.

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It is truly the golden age for South Korea.