Korea's AI Chip Ambition
South Korea inks $950 billion AI chip deals with global tech giants at San Francisco summit
Anonymous
Key Points
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SK Hynix is named as part of the collaboration alongside Samsung Electronics and NVIDIA, indicating broader involvement of Korean chipmakers beyond the SK Group and Samsung in the $950 billion package.
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The San Francisco summit featured attendees from Hyundai Motor Group and Naver (Chung Eui-sun and Lee Hae-jin) in addition to Samsung and SK leaders, with Nvidia’s Jensen Huang and Broadcom’s Hock Tan present and a video message from Microsoft CEO Satya Nadella reinforcing cooperation.
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President Lee Jae-myung issued the 'San Francisco AI Declaration,' vowing that South Korea will become an irreplaceable core nation in the AI supply chain and a trustworthy AI chip production base.
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The announcements build on megaprojects disclosed last month totaling over 4,000 trillion won (about US$2.73 trillion), covering a semiconductor production cluster, physical AI, and AI data centers.
South Korea has locked in $950 billion worth of semiconductor and AI deals with global tech giants, signed during President Lee Jae-myung's visit to San Francisco. The agreements involve Samsung Electronics, SK Group, NVIDIA, Broadcom, OpenAI, and Anthropic, according to Korea JoongAng Daily.
The biggest single deal: Samsung signed a $200 billion, five-year contract to supply chips to Broadcom through 2030, Bloomberg reported. Together, the announcements mark South Korea's most ambitious push yet to become a central player in the global AI chip supply chain.
Samsung and Broadcom Seal a $200 Billion Chip Pact
Samsung and Broadcom signed a formal memorandum of understanding covering advanced memory chips and AI semiconductors, Seoul Economic Daily reported. The deal uses Samsung's 2-nanometer and below manufacturing process — some of the most advanced chip-making technology in the world. It is structured as a "turnkey" agreement, meaning Samsung handles production from start to finish.
The contract runs five years and is valued at over $200 billion, or about 292 trillion South Korean won. Bloomingbit noted that the two companies signed the pact during the San Francisco summit, with Broadcom CEO Hock Tan present at the signing.
SK Group's $750 Billion Supply Deal Anchors the Broader Alliance
Beyond Samsung, SK Group — which includes memory chipmaker SK Hynix — agreed to supply $750 billion worth of high-performance semiconductors to global firms. That figure alone accounts for the bulk of the $950 billion total, according to Korea JoongAng Daily.
SK Hynix makes the high-bandwidth memory chips that power AI systems from companies like NVIDIA. Its inclusion in the deal signals that South Korea's two biggest chipmakers are both central to the plan. The agreements span AI infrastructure, data centers, and physical AI development.
San Francisco Summit Draws Tech Titans and a Bold Declaration
More than 230 people attended the San Francisco summit. NVIDIA's Jensen Huang and Broadcom's Hock Tan were in the room. Microsoft CEO Satya Nadella sent a video message pledging support. Hyundai Motor Group's Chung Eui-sun and Naver's Lee Hae-jin also attended, showing the effort reaches beyond chips into broader tech industries.
President Lee issued what he called the "San Francisco AI Declaration," vowing that South Korea will become "an irreplaceable core nation" in the global AI supply chain and a trustworthy chip production base. The summit built on megaprojects announced last month totaling over 4,000 trillion won — roughly $2.73 trillion — covering chip clusters, AI data centers, and physical AI assets, according to Seoul Economic Daily.
Why South Korea Is Betting Big on AI Chips Now
The deals come as AI demand for advanced chips is surging worldwide. Countries and companies are scrambling to lock in reliable supply. South Korea wants to be that supplier. Its two chip giants — Samsung and SK Hynix — already make most of the world's high-bandwidth memory used in AI systems.
The $950 billion package is designed to tie global AI firms directly to Korean production for years to come. If the deals hold, South Korea would supply chips to the companies building the world's most powerful AI models — a position that carries enormous economic and strategic weight, Seoul Economic Daily reported.
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