Samsung, SK Hynix sign 950bn won AI chip deals with US firms

South Korean memory chip giants Samsung Electronics and SK hynix have finalized major supply and partnership agreements with leading U.S. technology companies, a senior official announced on July -24. The deals, valued at a combined 950 billion won, were confirmed as President Lee Jae Myung visited San Francisco for a high-profile artificial intelligence summit.

Presidential chief of staff for policy Kim Yongbeom told reporters the agreements include a five-year, 750 billion won cooperation agreement for SK hynix to supply memory chips to companies including Nvidia. Separately, Samsung Electronics and Broadcom signed a 200 billion won memorandum of understanding covering the supply of advanced memory chips and foundry services for AI chip production over the next five years. The announcements concluded long-running negotiations, with the presidential visit serving as a catalyst.

The agreements center on the supply of High Bandwidth Memory (HBM) chips, a critical component for AI data centers and next-generation processors. South Korean firms currently control roughly 80 percent of the global market for these advanced chips. The multi-year commitments are intended to address...