South Korea Moves to Broaden AI Chip Supply Chain Beyond Samsung and SK Hynix

The artificial-intelligence boom has strengthened South Korea’s position in advanced semiconductors, led by Samsung Electronics and SK Hynix in high-bandwidth memory, or HBM. But that advantage masks a structural weakness: local chip designers, equipment makers and infrastructure providers remain heavily dependent on the two conglomerates. As AI competition shifts toward tightly integrated hardware, software and cloud ecosystems, concentration around the memory giants could constrain innovation and leave gaps elsewhere in the supply chain.

South Korea is now seeking to turn its HBM lead into a broader domestic AI semiconductor ecosystem. Policy investment and state-backed funding are being directed toward local chip design capabilities and more diversified AI computing infrastructure, while suppliers are being encouraged to develop beyond their traditional reliance on Samsung and SK Hynix. The strategy reflects a new phase of global competition in which control of an integrated supply chain, rather than leadership in a single component, is becoming increasingly important.