Nvidia Secures Major AI Chip Deals with South Korean Tech Giants

Published: 31 October 2025. The English Chronicle Desk

Global semiconductor leader Nvidia has signed landmark deals to supply more than 260,000 of its advanced artificial intelligence (AI) chips to South Korea, including the government and major corporations such as Samsung, LG, and Hyundai. The chips are set to power factories producing semiconductors, robots, and autonomous vehicles, positioning South Korea as a potential exporter of AI-driven technology, according to Nvidia CEO Jensen Huang.

Huang spoke at an Asia-Pacific Economic Cooperation (APEC) CEO summit in Gyeongju, South Korea, highlighting that the chips would allow companies to create “digital twins” of factories worldwide, enhancing production efficiency and global coordination. While the financial details of the deals were not disclosed, they form part of Nvidia’s broader strategy to expand AI infrastructure globally and embed AI more deeply into products and services.

The agreements come amid ongoing tensions over US-China trade relations. Nvidia previously held a 95% share of the AI market in China, which has since fallen to zero due to US export restrictions on its most advanced chips. Huang expressed a desire to sell Nvidia’s state-of-the-art Blackwell chips to China, pending US government approval, noting that such access would benefit both American and Chinese markets. Recent US-China discussions, prompted by meetings between former President Trump and Xi Jinping, could potentially ease restrictions, though no concrete developments have yet been announced.

South Korea, already a major hub for semiconductors and automotive manufacturing, aims to become a regional AI powerhouse. The government plans to use the Nvidia chips to build computing infrastructure under the concept of “sovereign AI,” giving it control over national AI data centers. Over 50,000 Nvidia chips will power the National AI Computing Center and facilities operated by South Korean tech firms including Kakao and Naver.

Nvidia relies on Asia-Pacific manufacturing partners such as Samsung, SK Hynix, and TSMC for chip production. TSMC produces Nvidia’s most advanced Blackwell series, while Samsung manufactures components for the H20 chips, designed specifically for the Chinese market under US export restrictions.

The deals follow a week of milestones for Nvidia, which became the first company to reach a $5 trillion valuation and announced several global partnerships with companies including Nokia, Uber, Stellantis, and the US Department of Energy. These moves aim to demonstrate the long-term value of AI investments and reassure investors of Nvidia’s growth prospects.

Analysts note that US efforts to restrict China’s access to advanced chips have spurred domestic innovation there, with companies like Huawei and Alibaba developing competitive AI processors. Nvidia’s Huang acknowledged China’s capabilities while emphasizing the importance of setting American technology as the global standard.

With these agreements, South Korea is set to strengthen its position in the AI sector, while Nvidia continues to navigate complex international trade dynamics, aiming to expand its global footprint in the rapidly growing artificial intelligence industry.