Microsoft and Google have launched a "chip grabbing" mode, sending employees to reside in South Korea; failing to obtain chips from Samsung or SK Hynix will result in dismissal.
The global artificial intelligence chip supply shortage is intensifying, with tech giants such as Microsoft and Google sending their procurement executives to South Korea to compete for memory chip supplies from Samsung Electronics and SK Hynix. These executives have set up permanent offices in Korea in order to secure supply contracts for key AI components such as HBM and DRAM.
According to sources cited by the Seoul Economic Daily, a Microsoft procurement executive who visited Korea in early June angrily left the negotiation table during contract and price talks with a Korean semiconductor company after being told it was "difficult to supply on Microsoft's requested terms." Recently, Google has fired some of its procurement managers because these employees failed to sign long-term agreements with suppliers in advance, exposing the company to supply chain risks. Currently, around 60% of the HBM needed for Google's TPU is supplied by Samsung Electronics. However, after demand exceeded expectations and Google sought additional supply from SK Hynix and Micron, its requests were refused.
Industry insiders analyze that this reflects the anxiety among global tech giants over the AI chip supply chain. Meanwhile, this "chip-grabbing" competition is reshaping the industry's talent landscape. More and more tech companies are relocating key procurement positions from Silicon Valley to semiconductor manufacturing centers such as Korea to facilitate more direct engagement with upstream suppliers.
Procurement Executives Stationed in Korea to Compete for Supply
To address the ongoing global shortage of artificial intelligence chips, the core procurement teams of tech giants such as Microsoft, Google, and Meta have effectively taken up permanent residence in Korea, striving to secure long-term, stable memory supply agreements with Samsung Electronics and SK Hynix. These executives aim to obtain not only key HBM products but also DRAM and enterprise SSDs—memory semiconductors widely used in AI chips and data centers.
Currently, the global high-performance HBM and LPDDR market is dominated by SK Hynix, Samsung Electronics, and Micron. Industry sources reveal that the HBM and DRAM production capacity of the two Korean companies for next year has already been fully booked. The high concentration on the supply side has forced tech companies to adopt "frontline stationing" strategies to pursue any possible capacity opportunities. However, the advanced production lines for HBM and other products at Samsung and SK Hynix are already operating at full capacity and cannot meet all market demand.
The fundamental driver behind this competition stems from the rigid demand for computing power in the AI industry. Whether it's GPUs, TPUs, or data centers, their performance highly depends on high-performance, low-power memory such as HBM and LPDDR. Amid increasingly fierce competition in AI, ensuring stable supply of critical memory has become a strategic priority for tech companies.
Recruitment Strategies Shift Toward Asian Markets
Tech giants are accelerating adjustments to their procurement organization structure, shifting critical memory procurement positions from headquarters in Silicon Valley or Seattle to Asia. This strategic layout is designed to enable tighter supply chain control and establish a more direct and flexible cooperation and response mechanism with semiconductor manufacturers at their locations.
Recently, Google posted job openings for global memory commodity managers, seeking professionals able to formulate data center memory procurement strategies covering DRAM and NAND flash. Similarly, Meta is recruiting global procurement managers for memory silicon who are capable of collaborating on technology roadmaps.
These roles go beyond traditional purchasing duties, requiring candidates to have both engineering backgrounds and technical understanding, able to locally synchronize technical engagement and supply assurance. Industry analysis points out that by deploying capable procurement teams in semiconductor manufacturing hubs like Korea, tech companies strive to seize critical resources and build firmer supply chain barriers amid intensifying competition.
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