Samsung Electronics and SK Hynix have agreed to pursue a combined $950 billion in semiconductor cooperation with global technology giants over five years, reaffirming South Korea's standing as a critical node in the global AI supply chain.
Samsung Electronics announced Saturday that it had signed a memorandum of understanding with Broadcom to build a strategic cooperation framework covering memory chips, foundry services and packaging worth $200 billion through 2030.
SK Hynix, meanwhile, agreed to a five-year long-term AI memory supply partnership with Nvidia, part of a broader commitment by SK Group to pursue $750 billion in AI infrastructure cooperation with global technology companies.
As the global AI market expands at an explosive pace, the role of South Korean chipmakers continues to grow.
The global memory chip market is projected to reach around 817 billion dollars this year — a roughly 250 percent increase from the previous year — according to the World Semiconductor Trade Statistics organization.
Securities analysts forecast that Samsung Electronics and SK Hynix, the world's top two memory chipmakers, will each post operating profit of around 400 trillion won and 300 trillion won, respectively, this year.
SK Group Chairman Chey Tae-won recently likened the surge in memory demand to "pandemonium," reflecting how aggressively global technology CEOs have been visiting South Korea to secure memory chip supplies.
The five-year horizon of the cooperation plans announced by Samsung Electronics and SK Hynix points to a broader structural shift in the semiconductor industry — away from its historically cyclical nature and toward stable, long-term supply agreements that underpin sustained investment and growth.
South Korean chipmakers are responding by sharply scaling up investment and accelerating timelines for projects already underway, going all-in on expanding production capacity.
Samsung Electronics plans to invest 2,030 trillion won in its Pyeongtaek campus P5 phases 1 and 2, currently under construction, and in the Yongin semiconductor cluster, while committing an additional 400 trillion won to build two memory chip fabrication plants in the Honam region.
Operations at the first fab at the Yongin cluster, currently under construction, have been moved up to the second half of 2029 — one to two years ahead of the original schedule.
SK Hynix is pursuing a medium- to long-term investment strategy totaling 1,100 trillion won to build an AI memory production belt linking Yongin, Cheongju and the Honam region.
The Yongin cluster, originally slated for completion in 2045, is now targeted to have its fourth fab finished by 2033 — a 12-year acceleration. Once production equipment and facilities are phased in, the cluster is expected to receive a total of 600 trillion won in investment, as announced last year.
arete@heraldcorp.com
