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US chip giant Nvidia has announced a series of major artificial intelligence initiatives in South Korea, signalling the country’s growing prominence in the global AI supply chain.
On Monday, the company revealed a “gigawatt-scale” AI data centre project in partnership with SK Telecom, with the first facility expected to come online in 2027. According to the firms, the project will support “AI services for enterprises and industries across Korea, with the vision to expand to greater Asia regions.”
While financial details were not disclosed, Nvidia also confirmed collaborations with Naver, LG Group, Hyundai, and Doosan Group on AI robotics. The company has teamed up with chipmaker SK hynix on a “multi-year technology partnership” to develop advanced memory components, which are essential for AI systems but are currently in short supply.
Nvidia CEO Jensen Huang emphasised the urgency of production during a Computex trade show in Taipei, signing a display with the words: “Please make more.”
Lian Jye Su, chief analyst at Omdia, told AFP that the deals were “about strengthening existing relationships and further validating South Korea’s role in the global AI supply chain.” The announcement comes amid a global memory chip shortage, which has driven profits for manufacturers like SK hynix and Samsung Electronics.
Recently, Samsung’s union agreed a bonus deal covering roughly 60 per cent of its domestic workforce, estimated at $330,000 per employee.
South Korean President Lee Jae Myung weighed in on the broader implications, asking whether the gains from AI growth should be shared with workers, investors, the state, and taxpayers. He acknowledged the challenge, asking, “If the operating profit margin exceeds 75 percent, does it belong solely to the company?”
Lee cautioned that aggressive redistribution could deter investment, calling for an international discussion on equitable profit sharing in the AI era.
