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• AI bust? Or not, Korea's data center suppliers stay busy Naver's Gak Chuncheon data center. Courtesy of Naver *Editor's note: South Korea has basked in the glow of Nvidia's epic rise and now stands exposed to the fallout from the sudden departure of Jensen Huang, a central architect and driver of the AI boom. His exit comes as scrutiny of soaring AI spending and resistance to data center construction test the durability of a boom that has powered Korea's semiconductor earnings and export surge. In this four-part series, AJP examines the ripple effects on chipmakers, the wider AI supply chain and the broader economy. SEOUL, November 13 (AJP) — For all the attention paid to chips, an AI data center is mostly a machine for moving electricity in and heat out. Before a watt reaches a GPU, it passes through a power plant, transmission lines and transformers, with batteries helping stabilize supply and provide backup. It then leaves as heat that has to be pumped, chilled or carried off by water. South Korea makes much of the equipment along that path, so the AI boom has paid the country well beyond its memory chipmakers. Huang's departure adds uncertainty to the pace of that buildout. But the equipment surrounding the chips runs on longer investment cycles, and much of it serves electricity networks whose needs extend beyond AI. The early hype and building spree are already running into constraints. In early November, Morgan Stanley said it expected about 5 gigawatts, or 20 percent, of the U.S. data center capacity planned for 2028 to slip into 2029. Research firm BMI estimates that 53 percent of U.S. hyperscale pipeline growth is exposed to slowdown risk, though "construction schedules for 2027 are largely locked in." Korea plans 8.4 gigawatts (GW) of AI data center capacity by 2029 and 18.4 GW by 2035. Only about 2.5 GW of roughly 20 GW announced has confirmed demand, according to a Sept. 2 issue brief by NEXT, a Seoul-based climate and energy think tank. Heat A conventional server rack draws 5 to 10 kilowatts, while racks packed with AI chips draw 40 to 100 kW or more. Cooling accounts for about 7 percent of electricity consumption at an efficient hyperscale site and more than 30 percent at less efficient enterprise sites, according to the International Energy Agency (IEA). Edited and compiled by AJP. Graphics AI Assisted The heat has pulled in Korean companies that never made a server. In July, LG Electronics became the first Korean company to win Nvidia's validation for a coolant distribution unit, which circulates coolant through liquid-cooling systems. A 2023 SK Telecom test that submerged servers in fluid cut cooling power consumption by 93 percent. Oil refiners are developing cooling fluids, and shipbuilders are designing floating data centers cooled by seawater. Much of this emerging business remains in validation or pilot stages. Cooling also brings noise. In April, Microsoft acknowledged that a hum from cooling fans at its Fairwater campus in Wisconsin carried farther than expected. Neighbors sued in July. The site SK Group and Amazon Web Services (AWS) broke ground in Ulsan in August 2025, with SK Ecoplant building the first hall under a 416.9 billion won contract. The site's initial 41 megawatts (MW) are due by November 2027, rising to 103 MW with about 60,000 GPUs by February 2029. SK Group Chairman Chey Tae-won said in September that expansion plans were nearing 900 MW. SK Telecom's AI data center booth setup at the WIS 2025. Courtesy of SK Telecom For builders such as SK Ecoplant, construction revenue depends on projects moving from plans to actual sites. Electricity access helps determine where that can happen. Of 736 applications for grid impact reviews of planned data centers filed between August 2024 and March 2026, 71 percent came from the capital area, according to climate ministry data. Only 10 capital-area projects totaling about 1 GW won final approval out of 33.6 GW sought. Outside the capital area, 187 of 214 applications cleared the first review. "Saying data centers can't be built for lack of power is a misunderstanding," said Kim Chul-hyun, a senior research fellow at the Korea Energy Economics Institute. "It's merely the grid to the capital area that is saturated." Honam, the southwestern region that hosts much of Korea's solar capacity, already generates more electricity than it uses, with a surplus of about 3 to 5 GW, the climate ministry said in July. On the east coast, power plants had 17.4 GW of generating capacity last year, but transmission lines out of the region could carry only 11.6 GW. The high-voltage direct current (HVDC) link intended to close that gap was originally due in 2019. It is now scheduled for 2027 after years of local opposition along its route and to an expanded converter station in Hanam, east of Seoul. Seoul itself generates only about a tenth of the electricity it uses. Solar power complex in Haenam, Jeollanam-do. Courtesy of BS Hanyang A special act will allow qualifying AI data centers outside the capital area to bypass the grid impact assessment from March 2027. Elsewhere, the strain is already prompting restrictions and resistance. Data centers used 23 percent of Ireland's metered electricity in 2025. Malaysia has restricted new data centers unrelated to AI for nearly two years. In the United States, local opposition blocked or delayed at least 45 projects worth nearly 68 billion dollars in the second quarter, according to Data Center Watch. Power generation Korea secured the world's first standard design approval for a small modular reactor (SMR) in 2012 but has yet to put one into operation. Its homegrown i-SMR is not due for completion until 2035. "There was not enough electricity, so the big tech firms decided to make it themselves," said Chung Bum-jin, a professor of nuclear engineering at Kyung Hee University, describing data center developers. NuScale Power's SMR mock-up model. Courtesy of NuScale Power Amazon took a stake in reactor developer X-energy in October 2024, aiming to deploy more than 5 GW of its small modular reactors in the United States by 2039. Korea Hydro & Nuclear Power (KHNP) and Doosan Enerbility later joined the partnership. In January 2026, Meta agreed to fund two of TerraPower's Natrium reactors totaling up to 690 MW, with delivery as early as 2032. The agreement also included rights to power from up to six more units by 2035. What developers need, Chung said, is "24/7 firm power" — electricity reliably available around the clock. Doosan Enerbility, which already makes SMR components for American developers, is building a plant in Changwon with annual manufacturing capacity for about 20 SMRs by 2031. "We are a company that takes the design once it is set and manufactures it," said Song Yong-ho, a senior manager at Doosan Enerbility. "We are simply waiting on KHNP to give their blue print for the nation's first SMR." HD Hyundai Heavy Industries signed a framework agreement in May to supply reactors for TerraPower's Natrium plant. Gas turbines are already shipping. On Oct. 6, Doosan dispatched its first exported 380-MW gas turbine, bound for SpaceXAI, Elon Musk's AI company, which has ordered 12. Thermal power plant in Taean. Courtesy of the Korean Public Service and Transport Workers' Union A report Kim co-wrote last year found no short- to medium-term power emergency from data centers in Korea. "There are many coal plants sitting idle," he said. "We can use those." He treated the emissions implications as a separate question. Batteries Synchronized GPU training can cause a hyperscale site's power demand to swing by tens of megawatts within milliseconds, according to energy research firm E Source. Batteries help absorb those fluctuations. LG Energy Solution's ESS products. Courtesy of LG Energy Solution Samsung SDI has won more than 60 gigawatt-hours (GWh) of U.S. energy storage orders this year, enough to keep its U.S. and Ulsan lines running at full capacity through 2028. LG Energy Solution puts its energy storage backlog at 160 GWh. Washington's tariffs widen the opening. The United States charges 40.9 percent on Chinese lithium-ion batteries against 12.5 percent on Korean ones. Chinese competition nevertheless remains formidable: CATL alone accounted for 27.1 percent of global energy storage battery shipments in the first half. At home, Samsung SDI and SK On are competing to supply batteries for the government's third energy storage auction. At 1,180 MW, the round is larger than the first two combined. The Korea Power Exchange is expected to name preferred bidders in November. The wires Lead times for generator step-up transformers, which raise voltage for transmission, exceeded 160 weeks in the first quarter of 2026, up from 143 weeks in 2024, according to Wood Mackenzie data. Taihan Cable & Solutions' cables. Courtesy of Taihan Cable & Solutions "Our biggest concern right now is capacity," an HD Hyundai Electric official said at an energy exhibition in Seoul. "It is so much a seller's market that even if we add capacity, I don't think margins will fall." LS Electric's third-quarter operating profit more than doubled, while HD Hyundai Electric's rose 15.1 percent and Hyosung Heavy Industries' increased 10.8 percent. Hyosung's heavy industries backlog reached a record 18.9 trillion won. HD Hyundai Electric expects a package order from a major technology company to help roughly double its distribution transformer sales next year to about 300 billion won. Cable makers are on the same curve. Taihan Cable & Solution's backlog reached a record 4.3 trillion won at the end of September. LS Cable & System's stood at 9.6 trillion won at the end of June. Korea's planned west coast "energy highway," an HVDC line linking the southwest to the Seoul area, will require the same types of cables and converters. After the lull A pause in construction would put builders and equipment for new halls under pressure first. Long order books offer transformer, cable and battery suppliers a cushion, while grid upgrades provide demand beyond data centers alone. Naver's GAK Sejong data center. Courtesy of Naver Morgan Stanley expects a shortfall of more than 30 percent in powered U.S. data center capacity to persist through 2028. Goldman Sachs expects global data center power demand to rise 170 percent between 2025 and 2030. The forecasts point to continuing infrastructure needs, but they do not guarantee customers for every proposed hall. SK Telecom plans to operate much of its new capacity as AI colocation, leasing space and power to tenants. "A colocation data center is, in the end, a high-end PC bang for tech firms with all the brand-new games on them," Kim said, referring to Korea’s internet gaming cafes. "How much demand there will be, nobody knows." Chung sees the slowdown as a question of pace. "Faster or slower, it is a future that is certain to come," he said. The Ulsan hall is due to reach full load in 2029. By then, the GPUs in its first rows may be a generation old. The transformers, cables and batteries around them were bought to outlast several chip generations. Korea's other AI dividend therefore has a different lifespan from its chip windfall, supported partly by the wider need to reinforce electricity networks. How far it grows will still depend on how many halls on paper get built — and how many find tenants. Chung put it more simply. "Someone who has used a computer can't stop using one," he said. "The same goes for a phone, and AI."
• Nvidia Faces Uncertain Future After CEO Jensen Huang's Departure "It takes 20 years to build a reputation, but five minutes to ruin it." This saying from Warren Buffett rings true as Jensen Huang, the CEO of Nvidia and the so-called 'AI Emperor,' exits amid controversy. Huang's 33-year journey, which began in a family restaurant in Portland, Oregon, has come to an abrupt end just over a week after the news broke. While the saying 'nothing lasts forever' holds, Huang's departure is particularly shocking given his remarkable success and peak influence.Nvidia's status as a leading global company is well-known. Until recently, it boasted a market capitalization exceeding $5 trillion and dominated 80-90% of the GPU market, a cornerstone of the AI era. World leaders and top executives lined up to meet Huang, including prominent figures from South Korean companies such as Samsung's Lee Jae-Yong, SK's Chey Tae-Won, Hyundai's Chung Eui-sun, and LG's Koo Kwang-mo, all eager to win his favor or establish partnerships.What Lies Ahead for Nvidia in the Post-Huang Era?All eyes are now on Nvidia's future without Huang, its founder and absolute authority. The AI industry, partner companies, rivals, and the capital markets are all keenly interested in where Nvidia will head next. Many draw comparisons to Apple after Steve Jobs, given the similar profound influence and charisma both leaders had in their respective industries.Steve Jobs resigned as Apple's CEO in August 2011 due to health issues and passed away in October of the same year. He named Tim Cook as his successor, who had already been acting as CEO during Jobs' declining health. Consequently, Apple's early years under Cook relied heavily on the iPhone ecosystem Jobs had established. Although the company faced concerns about innovation stagnation until around 2014, it managed to regain its footing by expanding into services and wearables, despite criticisms regarding its delayed response to the AI era.In contrast, Nvidia faces a different scenario following Huang's exit. Investment banks have noted two key differences between Apple and Nvidia post-Jobs. First, Nvidia lacks a clear successor; while Apple had Tim Cook, Nvidia currently has Colette Kress, the Executive Vice President and CFO, appointed as interim CEO. It remains uncertain whether a new CEO will emerge from within the company or be recruited externally. Additionally, Huang's position at Nvidia was absolute, as he was the founder and the sole leader of a flat organization with 60 direct reports. It is unclear whether a new CEO can maintain the same level of authority and charisma.Secondly, the nature of their businesses differs. The iPhone ecosystem generates ongoing consumer demand, while GPUs are capital goods that require annual advancements in speed and performance. If Nvidia fails to innovate, customers may switch to competitors. Companies like AMD, Broadcom, and various Chinese semiconductor firms are already eyeing Nvidia's market share.Stock Drops 4% as Market Takes Wait-and-See ApproachDespite Huang's departure, many believe Nvidia's position will remain strong. This optimism is based on the lengthy chip design process and the fact that much of the revenue for the next one to two years is already secured. Nvidia's unique ecosystem, known as 'CUDA,' also fuels this optimism. If GPUs are likened to car engines, CUDA serves as the control system that maximizes engine efficiency. Although competitors like AMD can produce GPUs, they still struggle to catch up with Nvidia due to CUDA's advantages.It has been just a day since Huang's resignation was announced, and the market remains divided between pessimism and optimism. Nvidia's stock price fell less than expected, considering the shock of the news. On November 12, shortly after the board announced Huang's resignation, the stock plummeted over 14% during trading but closed down only 4.34%. In after-hours trading, it rose by $1.65 (0.99%) to $167.84. The market capitalization did not drop below the $4 trillion mark.Wall Street interprets Nvidia's relatively modest stock decline as a signal to 'wait and see.' The stock had already adjusted about 30% since its peak in October, and Huang's potential departure was widely anticipated, leading to the perception of a 'forewarned crisis.'However, this situation is far from settled. The market may react significantly to Nvidia's earnings report on November 17 and the subsequent appointment of a permanent CEO. Long-term, the critical question will be how Nvidia's growth roadmap, established under Huang, will evolve. Will the next-generation architectures following Vera and Rubin continue to be competitive? How will Nvidia respond to price wars in the inference market? And will Huang's management style, which artificially stimulated AI demand, remain effective?Impact on South Korean Semiconductor CompaniesThe developments in Nvidia's governance are also of great interest to South Korean semiconductor companies, as the changes could represent either a crisis or an opportunity. However, current projections suggest that the situation will not pose a significant short-term threat to the South Korean memory industry. Nvidia has already secured 12 months' worth of orders for HBM, which it supplies. Some analysts even suggest that this could present a long-term opportunity. If Nvidia's dominance is shaken, leading to a multi-player landscape with AMD, Broadcom, and Google TPU, South Korean semiconductor firms, as the leading HBM producers, could gain greater bargaining power.Of course, there are also opposing scenarios. If Nvidia reduces its financial support, investments in data centers by NeoCloud and AI startups could decline, leading to decreased demand for HBM.Nvidia Without Its Captain... What Lies Ahead?Great companies often have exceptional founders. However, not all great companies maintain their greatness after the departure of their founders, whether voluntary or involuntary. In the U.S., companies like Boeing, Intel, McDonald's, and BP have experienced fluctuations following the sudden exits of their CEOs. Samsung also struggled to find direction after the passing of Lee Kun-hee.Even without a captain, a train continues to run, thanks to inertia. Nvidia is likely to operate smoothly for a while after Huang's departure. The influx of orders remains steady, and the AI market's position is unlikely to change drastically in the near term. Huang's design and establishment of the AI ecosystem at Nvidia are extensive and robust.The challenge arises when the power of inertia wanes. At that moment, the train may come to a halt. Even if inertia persists for a while, Nvidia may face crossroads where it struggles to determine its path. Before the momentum created by Huang's legacy fades, who will take the helm of the 'great ship' Nvidia? Can the new CEO navigate the barriers and crossroads that lie ahead? This is the point the market is closely watching. The true test for Nvidia will come at that moment.* This article has been translated by AI.
• KOSPI Holds Steady Amid Foreign Selling, Personal Buying; Samsung Electronics Up 1-2% The KOSPI index is maintaining its upward trend, supported by individual investors despite selling pressure from institutions and foreign investors. As of 1:14 PM on November 12, the KOSPI index rose by 17.44 points (0.32%) to 5,392.80 compared to the previous trading day. In the securities market, institutions and foreign investors sold a net 687.2 billion won and 12 billion won, respectively, while individuals bought a net 283.3 billion won. Among the top market capitalization stocks, movements were mixed. Samsung Electronics rose by 2.43%, SK Hynix by 1.10%, and SK Square by 0.38%, while LG Energy Solution fell by 1.64% and Hyundai Motor by 2.02%. At the same time, the KOSDAQ index recorded a decline of 7.68 points (1.09%), settling at 697.42. In the KOSDAQ market, individuals purchased a net 428.8 billion won, while foreign and institutional investors sold a net 395.7 billion won and 36.7 billion won, respectively. In the KOSDAQ market, top stocks also showed mixed results. Alteogen fell by 3.92%, EcoPro by 3.40%, EcoPro BM by 2.50%, and JUSUNG Engineering by 2.97%. Conversely, Rainbow Robotics rose by 1.15% and Simtech by 3.35%. The market is digesting concerns surrounding the potential dismissal of Jensen Huang, CEO of NVIDIA, by the company's board. Reports from The New York Times have raised allegations of additional extramarital affairs involving Huang, increasing uncertainty about his future. On the previous night, the New York stock market saw the Dow Jones Industrial Average rise by 0.49%, the S&P 500 by 1.31%, and the Nasdaq Composite by 1.60%. Notably, AI and semiconductor stocks performed strongly, with the Philadelphia Semiconductor Index surging by 5.66%. Seo Sang-young, an executive at Mirae Asset Securities, stated, "The uncertainty surrounding Jensen Huang's position could pose a burden, as it may disrupt NVIDIA's aggressive AI investment strategy, product development, and relationships with key clients." Han Ji-young, a researcher at Kiwoom Securities, noted, "Reports of Jensen Huang's alleged extramarital affairs and the board's preparations for his dismissal have led to NVIDIA's stock showing weakness in after-hours trading, dropping over 8%. However, the positive performance of CoreWeave and the successful demand forecast for Anthropic's IPO may sustain a risk-on sentiment, leading to a neutral or positive stock trend."* This article has been translated by AI.