Samsung and SK Hynix to Sign Massive Chip Supply Deals with US AI Leaders
During a South Korean delegation's visit to Silicon Valley, Samsung Electronics and SK Hynix are expected to sign major, high-value chip supply agreements and strategic partnerships with US AI giants including Nvidia, OpenAI, and Anthropic. These agreements will transition South Korea's previously announced investment plans into concrete projects with specific clients and construction sites. This collaboration solidifies South Korea's leadership in the semiconductor and physical AI sectors while securing critical memory chip supply chains for US AI pioneers amid surging hardware demand. It also marks a major step in executing South Korea's massive national investment plan for AI infrastructure and chip production. The upcoming deals will include long-term memory chip supply agreements, strategic investment partnerships, and memorandums of understanding (MOUs). Additionally, over half of the projects in the first phase of South Korea's planned 8-gigawatt AI data center capacity are expected to be finalized during this trip.
## BACKGROUND
Physical AI refers to artificial intelligence systems that integrate software algorithms with physical hardware, such as robots, sensors, and actuators, to interact autonomously with the real world. Recently, South Korea announced a massive investment plan of at least $880 billion to expand chip production capacity, build AI data centers, and secure its lead in these emerging technologies.