South Korean tech firms forge $950 billion AI alliance with U.S. giants

South Korean tech giants Samsung Electronics and SK Hynix are significantly deepening their ties with major U.S. technology firms, entering into substantial investment agreements totaling $950 billion. These deals aim to solidify their positions as key partners in the global artificial intelligence infrastructure, moving beyond their traditional roles as semiconductor suppliers.

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The AI era cannot be achieved by the strength of one company or country alone. To build a complete ecosystem with innovative AI models, cutting-edge semiconductors, data centers for stable services, and abundant power, global cooperation is essential.

The agreements, announced during the AI Summit in San Francisco, encompass a broad range of collaborations. SK Group, through its affiliates like SK Hynix and SK Telecom, is set to invest $750 billion over the next five years. A significant portion of this, $500 billion, is earmarked for AI infrastructure development in partnership with Nvidia. This collaboration will ensure SK Hynix a stable supply of high-bandwidth memory (HBM), crucial for AI, while expanding its memory business foundation. SK Telecom will also receive priority GPU supply from Nvidia for building a 2-gigawatt AI factory in South Korea.

Samsung Electronics is pursuing a strategic partnership with U.S. semiconductor firm Broadcom, targeting over $200 billion in cooperation by 2030. This collaboration will focus on supplying high-performance memory for AI accelerators designed by Broadcom, while also extending to advanced foundry and packaging processes. Hyundai Motor Group also announced strategic collaborations with Nvidia, Waymo, and Google DeepMind to build an AI ecosystem for intelligent devices like robots and autonomous vehicles.

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We must make South Korea an AI-native country.

Industry leaders emphasized the importance of global cooperation in the AI era. Lee Jae-yong, Executive Chairman of Samsung Electronics, stated, "The AI era cannot be achieved by the strength of one company or country alone." SK Group Chairman Chey Tae-won stressed the need to "make South Korea an AI-native country." These partnerships are expected to bolster South Korea's 'three mega-projects' in semiconductors, AI data centers, and physical AI, with officials aiming for early, tangible results.

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Until now, contracts were between individual companies, but now it is meaningful that semiconductors play a pivotal role in Korea-U.S. cooperation.