South Korean Chipmakers Commit $950 Billion in AI Supply Frameworks With US Tech Giants
Samsung and SK Group secure five-year frameworks with Nvidia, Broadcom as Seoul anchors its place in the AI supply chain.
South Korea's semiconductor giants have committed $950 billion in cooperation agreements with US technology firms over the next five years, betting that the AI boom will continue to drive unprecedented demand for advanced memory and chipmaking capacity.
The deals were unveiled at a San Francisco AI Summit convened by South Korean President Lee Jae Myung on July 24-25, 2026. SK Group will pursue long-term supply cooperation for advanced memory chips worth $750 billion with Nvidia and other global tech companies. Samsung Electronics signed a separate $200 billion memorandum of understanding with Broadcom covering advanced memory supply, including HBM4 and HBM4E, and foundry cooperation on 2nm processes for AI chips.
Frameworks, Not Final Contracts
Industry observers note the agreements are frameworks and MOUs rather than finalized binding contracts. Actual investment and supply volumes will follow as individual contracts are executed over the five-year period. The total commitment averages roughly $190 billion annually, or about 275 trillion won per year.
The announcements build on earlier pledges in June, when Samsung and SK Hynix committed approximately $520 billion to new domestic fabrication plants in South Korea. Together, the investments signal Seoul's determination to anchor itself as the indispensable supplier of memory and foundry infrastructure for the next generation of AI systems.
Data Centers and Robotics
SK Telecom plans to build a 2-gigawatt AI data center powered by Nvidia Vera Rubin chips and SK Hynix HBM4 memory, with the facility due online in 2027. Hyundai Motor Group and Nvidia agreed to jointly establish a "Robot Reference Platform" for developing and testing AI-powered robots, extending the chipmaker's reach beyond traditional computing into physical AI.
President Lee unveiled a "San Francisco AI Declaration" outlining South Korea's vision to become a core nation in the AI supply chain. Kim Yong-beom, the Presidential Policy Chief, said the summit was "a venue for combining South Korea's semiconductor competitiveness and its AI infrastructure, model and physical AI capabilities with the technology and capital of global big tech."
Why It Matters
The scale of these deals—nearly doubling previous domestic investment pledges—reflects a massive wager on the longevity of AI-driven demand for high-bandwidth memory and advanced processors. By locking in long-term partnerships with industry leaders like Nvidia and Broadcom, South Korea secures its role as a central hub in the global AI supply chain, even as competition intensifies from Taiwan, the US, and emerging fabrication hubs.