Lee Jae-yong, chairman of Samsung Electronics, and Sam Altman, CEO of OpenAI, met in the U.S. in a significant move symbolizing the restructuring of the global artificial intelligence (AI) semiconductor supply chain. As U.S.-South Korea cooperation on next-generation AI infrastructure becomes more visible, concerns about a peak-out in the domestic semiconductor industry are expected to ease considerably.
According to industry sources on July 26, the collaboration between Samsung Electronics and OpenAI is expanding beyond high-bandwidth memory (HBM) and DRAM supply to encompass the entire value chain, including advanced foundry processes. To operate OpenAI's next-generation super-large AI models, high-performance memory and customized semiconductor manufacturing capabilities are essential. Samsung's turnkey solutions, which provide everything from design to production and advanced packaging, are seen as a key focus of these discussions.
The meeting between Lee and Altman is part of efforts to quickly eliminate uncertainties in semiconductor supply and secure stability. For OpenAI, which needs to continue enhancing its large language models (LLMs), securing a large volume of semiconductors is a top priority. This is why there are expectations that a long-term supply agreement (LTA) between OpenAI and Samsung Electronics is imminent amid a global memory supply shortage.
If a major LTA is confirmed, Samsung will secure a long-term supply source for high-value HBM and lay the groundwork for expanding orders in the foundry and advanced packaging sectors. This could create synergies by increasing the operational rates of the 2nm advanced foundry line in Pyeongtaek and the advanced packaging (AVP) process in Cheonan.
There is growing optimism about an unprecedented 'ten years without a downturn' in the domestic semiconductor industry. Following the 'San Francisco AI Summit,' Samsung entered into a five-year long-term supply agreement with Broadcom and is currently negotiating with several big tech companies for advanced memory supply agreements. While initial contract periods typically last around five years, considering new line expansions, process stabilization, and next-generation chip development cycles, the collaboration is expected to last over ten years.
SK Hynix is in a similar situation. Companies like NVIDIA, Microsoft, and Google are offering substantial advance payments to secure HBM production lines and are requesting increased volumes. In its first-quarter earnings report, SK Hynix stated, "Demand from customers for the next three years has already exceeded our production capacity (CAPA)," noting a surge in requests for long-term supply agreements for both sixth-generation HBM (HBM4) and seventh-generation HBM (HBM4E).
Experts predict that the expansion of big tech collaborations centered around LTAs led by Samsung Electronics and SK Hynix will significantly alleviate the chronic volatility of the domestic semiconductor industry.
Ahn Gi-hyun, executive director of the Korea Semiconductor Industry Association, stated, "LTAs that involve large advance payments and volumes greatly enhance the profit predictability for domestic semiconductor companies," adding that this could be a decisive factor in breaking the cycle of 'chicken game' that has led to massive losses during past downturns.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.