Samsung and SK Hynix to supply chips to Nvidia and other US tech companies in $950 billion deal
The announcement was made during President Lee Jae Myung's visit to San Francisco, where he met with executives from companies such as OpenAI, Nvidia, Anthropic and Broadcom.
Samsung Electronics
South Korea's two leading memory chip manufacturers, Samsung Electronics and SK Hynix, will supply components to U.S. tech companies, including Nvidia, under agreements totaling $950 billion. This was announced on Saturday by a senior advisor to the South Korean president.
The announcement was made during President Lee Jae Myung's visit to San Francisco, where he met with executives from companies such as OpenAI, Nvidia, Anthropic and Broadcom. Kim Yong-beom, the presidential chief of staff for policy and a member of the delegation, explained to reporters that both South Korean companies and the American firms agreed to "seek cooperation" in the sector.
South Korea is home to Samsung Electronics and SK Hynix, whose state-of-the-art memory chips are key to the development of artificial intelligence. These products have boosted the country's economic prospects.
Multibillion-dollar deals with Nvidia and Broadcom
The package includes a five-year cooperation agreement with SK Hynix to supply memory chips worth $750 billion to companies such as Nvidia.
In addition, it includes a $200 billion memorandum of understanding between Samsung Electronics and Broadcom, aimed at supplying advanced memory chips and foundry services for the production of artificial intelligence chips over the next five years.
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According to a Samsung statement cited by AFP, the company and Broadcom plan to "pursue a strategic collaboration for the supply of industry-leading memory solutions, including High Bandwidth Memory (HBM), supporting Broadcom’s next-generation AI accelerators."
SK Hynix and Nvidia aim to "accelerate large-scale AI infrastructure development." The two companies "will co-develop and optimize next-generation AI memory solutions, including HBM, to meet evolving infrastructure demands ranging from large language model training to agentic AI and physical AI," the South Korean firm stated.
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SK Hynix and Samsung Electronics are among the world's top three manufacturers of advanced memory chips, alongside the U.S.-based Micron. These components, known as high-bandwidth memory (HBM), are used in A.I. processors alongside powerful GPUs to generate chatbot responses or realistic images.
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