South Korea's two largest semiconductor manufacturers, Samsung and SK Hynix, are preparing to announce significant memory chip supply agreements with major American technology companies during President Lee Jae Myung's upcoming visit to San Francisco this weekend.

Presidential policy adviser Kim Yong-beom told reporters that the deals will include long-term memory chip supply contracts with global technology partners. He indicated that "very large and meaningful figures" are expected to be disclosed, though he did not provide specific amounts. The visit is being positioned as an effort to reinforce the technology and economic partnership between South Korea and the United States.

Key Meetings and Participants

President Lee is scheduled to hold meetings with Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman during his time in San Francisco. He will also participate in an AI summit attended by prominent South Korean business leaders, including Samsung Electronics Chairman Jay Y. Lee, SK Group Chairman Chey Tae-won, and Hyundai Motor Executive Chair Euisun Chung.

Representing the US side, Broadcom CEO Hock Tan, Anthropic CEO Dario Amodei, and Naver Corporation's Lee Hae-jin are also expected to attend the summit, bringing together leading figures from across the AI hardware and software landscape.

The meeting with Jensen Huang is particularly notable given Nvidia's central role in AI GPU production. SK Hynix has been the primary supplier of HBM3E chips used in Nvidia's H100 and H200 GPUs, while Samsung has been working to qualify its next-generation HBM products with major AI customers. Securing long-term supply commitments from both Korean manufacturers could help Nvidia and other AI hardware firms address persistent HBM supply bottlenecks that have constrained GPU production volumes.

The Strategic Importance of HBM Chips

Central to the anticipated agreements is high-bandwidth memory (HBM) technology. These specialized chips are integral components within the graphics processing units (GPUs) that power AI data centres and large language models.

Samsung and SK Hynix collectively command approximately 80% of the global HBM chip market, giving South Korea considerable leverage in AI supply chain discussions with American firms. The remaining market share is held primarily by US-based Micron Technology, which has been accelerating its own HBM production ramp to compete.

The Korea Economic Institute of America stated that the primary focus of the talks will be South Korea's support for AI infrastructure development in the United States and its supply of cutting-edge HBM chips.

The talks also come amid a broader reshaping of the global semiconductor supply chain driven by US export controls on advanced chip technology to China. Both Samsung and SK Hynix operate significant manufacturing facilities in China — including SK Hynix's DRAM plant in Wuxi and Samsung's NAND facility in Xi'an — creating strategic considerations for how they navigate competing US and Chinese interests.

Expected Agreements and Investments

The anticipated announcements encompass strategic partnerships, memorandums of understanding, and long-term supply contracts. In addition to the chip supply deals, US technology companies are expected to unveil strategic investments in AI data centres, though specific details have not yet been disclosed.

President Lee's San Francisco visit comes as part of a broader trip that will continue to South America, where he is scheduled to attend summits with regional leaders.

If confirmed, these agreements would represent a significant deepening of ties between South Korean semiconductor manufacturers and the US technology industry, occurring at a time when global demand for AI infrastructure is accelerating rapidly and nations are competing to secure domestic access to advanced chip production.

Source: CoinCentral