Story
Samsung, SK Hynix Announce $950 Billion in Chip Supply Deals with US Tech Giants
Summary
South Korea's two largest memory chipmakers, Samsung and SK Hynix, have unveiled long-term supply partnerships with major U.S. technology firms valued at a combined $950 billion to meet soaring demand from the artificial intelligence sector.
South Korean semiconductor giants Samsung Electronics and SK Hynix have announced long-term memory chip supply partnerships with major U.S. technology companies totaling a combined $950 billion. The agreements underscore the critical and growing demand for advanced memory, particularly high-bandwidth memory (HBM), needed to power the global artificial intelligence infrastructure buildout.
The Agreements in Detail
The deals were detailed by South Korean presidential adviser Kim Yong-beom, Reuters reported. The partnerships are structured to secure long-term capacity for U.S. firms amid potential memory shortages and rising prices.
- SK Hynix is set to supply $750 billion worth of memory chips to American companies, including AI leader Nvidia, through long-term agreements.
- Samsung will provide $200 billion in chips to Broadcom, a key supplier of custom processors and networking equipment for AI data centers.
These arrangements signal a strategic move by U.S. technology leaders to lock in their supply chains for essential AI components for years to come.
Strategic Context and AI Demand
AdThe announcement was made during South Korean President Lee Jae Myung’s visit to San Francisco, where he hosted an AI summit. The event included executives from Nvidia, OpenAI, Anthropic, and Broadcom, alongside senior representatives from Samsung and SK Group.
The partnerships reflect the deepening interdependence between U.S. AI developers and South Korea's dominant memory chip manufacturers. South Korean officials estimate that U.S. companies represent between 80% and 90% of the demand that will support the country's planned semiconductor industry expansion.
Broader Initiatives
Beyond the headline figure, SK Hynix also revealed a separate initiative valued at over $500 billion with Nvidia and other partners. This program will focus on developing next-generation memory and constructing large-scale AI data centers.
As part of this effort, SK Telecom plans to build a two-gigawatt data center facility utilizing Nvidia’s upcoming Vera Rubin processors and SK Hynix’s HBM4 memory. The first phase of this facility is slated to begin operations in 2027. Both Samsung and SK Hynix have also held supply discussions with AI developer Anthropic, as more firms seek direct access to memory capacity.
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