South Korea links up with the U.S. AI industry chain! Samsung and SK Hynix sign a $950 billion chip deal with Nvidia, Broadcom and others

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South Korea is rapidly establishing its core position in the global artificial intelligence supply chain through unprecedented capital and production capacity collaborations with American technology giants, marking a deep strategic alignment between the two countries in cutting-edge technology industries.

According to Reuters, South Korean presidential adviser Kim Yong-beom revealed at a press conference on Saturday that Samsung Electronics and SK Hynix will reach storage chip supply deals with major American tech companies, including Nvidia, with a total value of up to $950 billion. Among them, SK Hynix will provide U.S. companies with long-term storage chips worth $750 billion, while Samsung Electronics will supply Broadcom with $200 billion worth of chips.

Meanwhile, Nvidia and SK Group further announced an AI infrastructure plan worth over $500 billion. This series of historic, massive orders and infrastructure investments will not only directly ease the current high-bandwidth memory (HBM) supply chain bottleneck, but also secure long-term, highly visible revenue expectations for Korean chip manufacturers, reshaping the global semiconductor market’s production capacity and investment landscape.

This business breakthrough closely aligns with South Korea’s top-level political push. Against the backdrop of global AI computing demand far exceeding supply, Korean President Lee Jae-myung recently launched the “San Francisco AI Declaration.” This cross-border strategic binding directly ensures the stable supply of critical hardware for American tech companies, while propelling Korea’s semiconductor manufacturing base to the forefront of global AI computing capacity expansion.

Massive Chip Orders Secure Long-Term Supply

Ensuring the underlying supply stability of computing hardware is at the core of this cooperation. According to Reuters, the $950 billion storage chip supply agreement will build a long-term capacity moat for American tech giants. As Nvidia's largest current supplier of storage chips, SK Hynix plays a key role in this partnership.

Meanwhile, Samsung Electronics’ collaboration with Broadcom goes well beyond a traditional supply relationship. According to Bloomberg, the two parties have signed a strategic Memorandum of Understanding (MOU), planning to cooperate on storage chips and wafer foundry with a total value of over $200 billion over the next five years (until 2030).

Specifically, in the storage business, Samsung will provide Broadcom’s next-generation AI accelerators with advanced storage solutions; in foundry, both sides will jointly develop Broadcom products based on Samsung’s advanced 2nm and below processes, including wireless broadband communication chips. The collaboration will also extend to advanced packaging technologies such as Samsung’s 2.3D and 2.5D based on the 2nm process, supporting higher-performance and lower-power AI and network chips.

Reportedly, SK Hynix’s long-term agreement with Nvidia aims to secure advanced storage chip supply, and both sides will jointly develop high-bandwidth memory (HBM) for AI training, AI agents, and physical AI applications. HBM, by stacking multiple memory chips, provides the data transfer speeds required for advanced AI processors and has become a key bottleneck in today's AI supply chain.

With growing demand for AI servers, robots, and supercomputers, SK Hynix plans to double its wafer capacity by 2030 to further improve HBM supply and synchronize future storage chip production more closely with Nvidia’s chip development schedule.

Over $500 Billion to Reshape AI Infrastructure

Beyond securing the underlying chip supply, large-scale data center construction is another investment focus.

According to reports, Nvidia and SK Group’s plan of over $500 billion covers the construction of large AI data centers and the development of next-generation HBM. SK Telecom will build an AI data center in Korea with a total capacity of 2 gigawatts, with the first project adopting Nvidia’s Vera Rubin platform and SK Hynix’s HBM4 memory.

The first facility of this “AI factory” is expected to officially begin operations in 2027 (i.e., next year). This two-gigawatt project is built upon SK Telecom’s previous commitment to construct gigawatt-level AI cloud infrastructure, with funding potentially coming from global tech companies, overseas capital, and other strategic partners.

In addition, Nvidia is continuing to expand its investment footprint in Korea. According to Bloomberg, Nvidia announced on Friday night that it will invest $1 billion in Naver to support the construction of an AI data center in Korea. This funding will allow Naver to expand the scale of its Nvidia AI computing platform-powered data center to more than triple its original size.

The “San Francisco AI Declaration” Drives National-Level Strategic Alignment

Behind the comprehensive alliance in the industry is South Korea’s national-level strategic plan to become a global AI powerhouse.

On July 24, South Korean President Lee Jae-myung hosted a high-level AI summit in San Francisco, bringing together global leading AI developers and Korea's top business leaders. At the summit, Lee officially announced the “San Francisco AI Declaration,” which clarified the core vision for AI technology cooperation between South Korea and the United States and pledged to open Korea’s "vibrant AI ecosystem" to the global market.

The lineup at this summit underscored the strategic tier of the cooperation. Before the summit, Lee had separate meetings with Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman, Anthropic CEO Dario Amodei, and Broadcom CEO Hock Tan.

Meanwhile, representing South Korean industry at the summit were Samsung Electronics Executive Chairman Jay Y. Lee, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chairman Euisun Chung, and Naver founder Lee Hae-jin.

According to Bloomberg, Nvidia CEO Jensen Huang highly praised the partnership in an interview. He said that it is now “the golden age of Korea,” that Korea’s semiconductor industry and its industrial system are thriving in tandem, and emphasized that Korea is a “country capable of helping the world build AI infrastructure.”

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