SK Hynix, Samsung strike $950B chip deals with US firms
What's the story
South Korean tech giants SK Hynix and Samsung Electronics have signed a massive $950 billion partnership with major US technology companies. The deal involves the long-term supply of memory chips to these firms. SK Hynix will provide chips worth $750 billion, while Samsung will chip in with another $200 billion worth of chips to Broadcom, a presidential adviser has confirmed.
Strategic alliances
Partnership with NVIDIA
The $950 billion in new AI initiatives is part of a larger strategy.
The group has also struck a deal valued at more than $500 billion with NVIDIA.
It includes a long-term partnership to secure next-generation memory supply for NVIDIA and also jointly develop high-bandwidth memory for AI training purposes.
Tech cooperation
Collaboration with Broadcom
Samsung Electronics has signed a memorandum of understanding with Broadcom for up to $200 billion. The deal covers memory chips, foundry services, and advanced packaging.
As part of this agreement, Samsung will work with Broadcom on its next-generation AI accelerator based on Samsung's HBM technology.
They will also provide sub-2-nanometer foundry process and advanced packaging solutions as part of the collaboration.
Tech advancement
SK Telecom's AI data center
As part of the $500 billion AI initiative, SK Telecom plans to build a 2-gigawatt data center powered by Vera Rubin chips and SK Hynix's HBM4 high-bandwidth memory chips.
The facility is expected to go live in 2027.
This ambitious project highlights the growing collaboration between South Korean tech giants and their US counterparts in advancing AI technology.