South Korea's SK Hynix, Samsung Elec sign $950 billion partnership with US big tech

South Korea's SK Hynix, Samsung Elec sign $950 billion partnership with US big tech

South Korea’s leading semiconductor manufacturers, Samsung Electronics and SK Group, have established major cooperation agreements with US technology companies totaling $950 billion over the next five years. These partnerships, spanning semiconductors, AI infrastructure, and robotics, were formally announced during the San Francisco AI Summit attended by South Korean President Lee Jae Myung. The agreements focus heavily on securing the supply of advanced artificial intelligence (AI) semiconductors, specifically high-bandwidth memory (HBM), and developing massive AI infrastructure. This alliance aims to transition South Korea from a manufacturing powerhouse into a key driver of the global AI supply chain.

SK Group has committed to long-term advanced memory supply and infrastructure collaborations worth $750 billion. A core component of this initiative is a $500 billion agreement specifically with Nvidia. Under this agreement, SK Hynix will provide its next-generation HBM4 memory to support Nvidia's upcoming Vera Rubin AI computing platforms, while SK Telecom partners with Nvidia to construct a massive AI data center in South Korea with a capacity of up to 2 gigawatts (GW). The remaining $250 billion from SK Group is allocated for collaborations with other tech giants, including Microsoft, Anthropic, and Amazon Web Services.

In a parallel development, Samsung Electronics signed a memorandum of understanding (MOU) with Broadcom valued at over $200 billion through 2030. Under this agreement, Samsung will supply HBM and other memory solutions required for Broadcom's next-generation AI accelerators. Furthermore, Samsung will manufacture Broadcom's communication semiconductors utilizing its advanced sub-2-nanometer process technologies and advanced packaging. This collaboration signifies Samsung's strategy to expand beyond memory and leverage its comprehensive turnkey capabilities in foundry and packaging services.

These monumental agreements lock in a massive portion of the future HBM pipeline, structurally tightening the available spot and contract market capacity for uncontracted buyers through at least 2027. By securing bilateral supply agreements, major hyperscalers and designers like Nvidia and Broadcom are raising procurement risks for competitors operating outside these partnerships. Additionally, Broadcom's move to utilize Samsung's 2-nanometer foundry and advanced packaging signals the emergence of a credible second-source alternative to TSMC, potentially relieving some CoWoS (Chip-on-Wafer-on-Substrate) concentration risk over the next few years.

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Sources:

Samsung Electronics, SK Group Unveil $950B AI Pact Amid Scrutiny https://www.chosun.com/english/industry-en/2026/07/26/PJ7STJI62RDLBI2ZUO55UT73H4/

Samsung, SK Group Announce $950 Billion AI Partnerships With US Tech Companies https://www.thelec.net/news/articleView.html?idxno=12526

Nvidia, Samsung and SK Hynix Set for Mega-Orders as South Korea Finalizes $950 Billion AI Partnership; Lee Jae-myung Bets on AI – TradingKey https://www.tradingkey.com/analysis/stocks/more/262054880-south-korea-finalizes-950-billion-ai-pact-nvidia-samsung-sk-hynix-tradingkey

Samsung, SK hynix Chase Diverging AI Deals – Businesskorea https://www.businesskorea.co.kr/news/articleView.html?idxno=273640

Nvidia-SK Hynix & Samsung-Broadcom Lock In $950B HBM Supply Agreements, Securing Next-Gen Memory Pipeline Through 2030 - Silicon Analysts https://siliconanalysts.com/market/nvidia-sk-hynix-samsung-broadcom-lock-in-950b-hbm-supply-agreements-securing-nex-2026-07-25