Gyeongju: The head of Nvidia Corp. expressed confidence on Friday that South Korean companies involved in U.S. businesses will successfully navigate challenges posed by Washington's tariff policies. Jensen Huang, the CEO of Nvidia, shared his optimism about Korean companies' ability to adapt and thrive despite the tariff issues during his remarks at the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea.
According to Yonhap News Agency, Seoul and Washington recently finalized an agreement on South Korea's $350 billion investment pledge, which includes a trade deal reducing U.S. tariffs on Korean goods and autos from 25 percent to 15 percent. Nvidia has pledged to deploy up to 260,000 graphic processing units (GPUs) in South Korea in collaboration with the government and major companies like Samsung Electronics, SK Group, Hyundai Motor Group, and Naver Cloud Corp. This initiative aims to support the development of large-scale artificial intelligence (AI) factories in the country.
In a separate development, Hyundai Motor and Nvidia have signed a trilateral memorandum of understanding (MOU) with the South Korean government for a state-led initiative to establish a national physical AI cluster, requiring an investment of approximately $3 billion. This project includes the creation of Hyundai Motor Group's Physical AI Application Center, Nvidia AI Technology Center, and related physical AI data centers in the region.
Huang emphasized the significant opportunity for South Korea in the field of physical AI and robotics, citing the country's expertise, technology, and market potential. He noted that South Korea is unique in its ability to both create and utilize robots, which positions it well for advancements in this area.
Furthermore, Huang praised Samsung Electronics and SK hynix for their capabilities in memory technology, particularly in high bandwidth memory (HBM) products. He expressed confidence in the long-term partnership between Nvidia and the two South Korean firms, highlighting Korea's world-class standing in memory technology.
When asked about choosing between the two chipmakers, Huang stated that both are essential partners for Nvidia. SK hynix has been a primary supplier of HBM chips, while Samsung is emerging as a significant partner, indicating a new phase of competition between the two. The estimated value of Nvidia's planned South Korean Blackwell GPU supply, based on the price of HBM3E chips, could exceed 900 billion won.