Nvidia clinches deals with South Korean tech giants

SEOUL — Nvidia on Monday announced a series of strategic partnerships in South Korea with major technology firms including SK Hynix and Naver, as the U.S. chip giant moves to secure advanced memory supplies and expand infrastructure for its artificial intelligence ambitions.

The agreements were unveiled during a high-profile visit to South Korea by Nvidia Chief Executive Jensen Huang, which began on Friday and included meetings with top business leaders, informal dinners featuring local cuisine such as grilled pork belly and soju, as well as appearances in public events with industry figures and personalities.

Nvidia and its partners, which also include SK Telecom and Doosan Group, did not disclose financial terms of the deals.

SK Group, the parent company of SK Hynix and SK Telecom, said both subsidiaries had signed separate agreements with Nvidia. SK Hynix entered a multi-year technology partnership that will focus on developing advanced memory solutions for global AI data centers.

The partnership comes as demand for high-bandwidth memory continues to surge, with chipmakers under pressure to scale production for AI workloads. SK Hynix and Nvidia said the collaboration would help ensure stable supply aligned with Nvidia’s expanding roadmap, which now includes robotics, personal computing, and AI supercomputing systems.

“SK Hynix has been Nvidia’s largest memory partner. SK Hynix will continue to be Nvidia’s largest memory partner,” Huang said after meeting SK Group Chairman Chey Tae-won at the conglomerate’s headquarters.

Huang added that the agreement with SK Hynix, a key rival to Samsung Electronics and U.S.-based Micron Technology, will run for more than two years, with options for extension.

“We already procure and buy from SK Hynix billions and billions of dollars each year, and it’s going to grow substantially,” he said.

An analyst at NH Investment & Securities said the deal reinforces a broader shift in the memory chip industry, where products once treated as commodities are increasingly becoming customized for specific AI customers and applications.

Other agreements announced during the visit include SK Telecom’s plan to build a gigawatt-scale AI cloud infrastructure in South Korea using Nvidia technology, with its first AI data center expected to become operational in 2027. Nvidia also said Naver and Doosan Group will use its platforms to develop AI data center capabilities.

Doosan, which is developing robotics systems and produces materials used in Nvidia’s Blackwell chips, said it expects its energy solutions to be integrated into Nvidia’s data center ecosystem, alongside potential applications of the U.S. company’s physical AI technologies.

Nvidia is also expanding its collaboration with LG Group in electronics, mechanical systems, and artificial intelligence for humanoid robotics, Huang said after meeting LG Chairman Koo Kwang-mo. He added that both companies are jointly exploring next-generation data center architecture, including cooling systems, power delivery, and full facility design.

South Korea, a global manufacturing hub for semiconductors, electronics, automobiles, and shipbuilding, remains central to the global AI supply chain. SK Hynix and Samsung are among the world’s largest producers of memory chips, a critical component in data center infrastructure.

The country’s benchmark Kospi index has surged in recent months on strong gains in chipmakers tied to the artificial intelligence boom, but fell sharply on Monday amid global tech stock declines following stronger-than-expected U.S. labor data that fueled expectations of continued high interest rates.

Shares of both Samsung and SK Hynix dropped more than 10% in early trading before partially recovering, with losses narrowing later in the session.

Responding to concerns over the global tech selloff, Huang struck an optimistic tone, saying the downturn presented an opportunity for investors.

“Everybody should be very excited; they can now buy stock at a cheaper price, and it’s absolutely true that the future of AI is very bright,” he said.

Huang is also scheduled to meet Jun Young-hyun, who leads Samsung’s semiconductor business, as well as Hyundai Motor Group Executive Chair Euisun Chung later in the day, according to company and industry sources. -Reporting by Heekyong Yang, Hyunjoo Jin, Jack Kim and Brenda Goh; Editing by Tom Hogue and Jamie Freed/Reuters