Jensen Huang's reported resignation from Nvidia could work in favour of South Korean chipmakers, particularly SK hynix and Samsung Electronics, as the company may no longer have the same bargaining power over its memory chip suppliers.
Industry experts believe the leadership change could affect Nvidia's ties with suppliers of high-bandwidth memory (HBM), which is widely used in AI chips.
Huang, who founded Nvidia in 1993, reportedly stepped down on Thursday following allegations about his personal relationship with a woman suspected by US officials of having links to Chinese intelligence. Nvidia has named Chief Financial Officer Colette Kress as interim CEO and said its operations would continue without disruption.
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The development is being closely watched in South Korea, home to two of the world's biggest memory chipmakers, SK hynix and Samsung Electronics. Both companies, along with US-based Micron, supply HBM chips used in advanced AI systems.
Nvidia's share of global HBM demand is expected to fall in the coming years. LS Securities estimates that the company's share will decline from 66% in 2025 to 57% in 2026. Morgan Stanley sees a steeper fall, projecting it to reach 37.3% in 2027. Google's share, meanwhile, is expected to rise to 36%.
For South Korean manufacturers, a decline in Nvidia's share could mean more business from other technology companies investing heavily in AI. It could also give suppliers greater room to negotiate prices and supply agreements.
SK hynix could reportedly supply HBM4 to Nvidia at $3-$3.30 per gigabit in 2027, compared with $3.70-$4.10 charged to other major customers, including AMD, Broadcom, Amazon and Google.
Nevertheless, industry concerns extend beyond semiconductor procurement. Executives are also questioning whether Nvidia's newer AI ventures, many of which were driven directly by Huang, will retain their momentum under different leadership.
Ahn Ki-hyun, executive vice president of the Korea Semiconductor Industry Association, told The Korea Herald that a decline in Nvidia's market dominance would not necessarily hurt Korean suppliers because rival chipmakers would also require their memory products.
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He suggested that distributing supplies among several major customers could offer manufacturers greater business opportunities which was depending heavily on Nvidia.
(With the ANI inputs)
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