Samsung, SK Hynix to sign large chip supply deals with US firms

Samsung Electronics and SK Hynix, two of the world’s largest memory chip manufacturers, are finalizing multiyear supply agreements with major U.S. technology companies, according to a Bloomberg report. The deals, which could be announced in the coming weeks, are expected to involve the supply of high-bandwidth memory (HBM) chips used in artificial intelligence (AI) applications. The agreements would affect the global semiconductor supply chain, as Samsung and SK Hynix dominate the HBM market, which is critical for training and running large AI models. The deals matter because they could reshape the competitive landscape of the AI chip industry, ensuring a stable supply of advanced memory for U.S. firms like Nvidia, which relies heavily on HBM for its AI accelerators. The report did not specify exact financial terms but noted that the contracts are likely to be substantial, given the soaring demand for AI chips. Samsung and SK Hynix have been investing heavily in HBM production capacity, with Samsung recently announcing a $230 billion investment plan over the next 20 years to expand its semiconductor facilities in South Korea. The likely next steps include formal announcements of the agreements, which could further tighten the supply of HBM chips and potentially lead to higher prices for AI hardware. The deals also underscore the deepening ties between South Korean chipmakers and U.S. tech giants amid ongoing geopolitical tensions over semiconductor supply chains.