Jensen Huang's Resignation Prompts Urgent Review of S. Korea's AI Supply Chain... Is the 260,000-GPU Plan on Track?

National AI Strategy Committee Discusses Impact of Nvidia Executive Shake-Up and Response Measures
Maintaining Existing Cooperation While Expanding Use of Domestic AI Semiconductors and Diversifying Supply Chains

Uncertainty in the global AI semiconductor market has increased following the sudden resignation of Nvidia CEO Jensen Huang, prompting the government to urgently review South Korea's GPU supply chain. The government decided to strengthen its response system to ensure the smooth rollout of plans announced with Nvidia last year to introduce more than 260,000 GPUs, as well as AI collaboration projects involving South Korean companies.

The National AI Strategy Committee said on November 13 that it had held an emergency meeting to assess the impact of the Nvidia executive shake-up on South Korea's AI industry and supply chain.

Ha Jung-woo (right), standing vice chair of the National AI Strategy Committee, discusses the impact of changes to Nvidia’s senior management on South Korea’s AI industry and GPU supply chain at an emergency review meeting held on the 13th. Courtesy of the National AI Strategy Committee.

The meeting followed Nvidia's announcement on November 12, local time, that CEO Jensen Huang had resigned and Chief Financial Officer Colette Kress had been appointed interim CEO. Nvidia is a key company in the global AI semiconductor market and a major AI infrastructure partner for South Korea.

The committee discussed the stability of South Korea's GPU procurement plans, the sustainability of existing cooperation projects, and changes in the global AI semiconductor supply chain. It also reviewed the potential effects on GPU delivery schedules, technical support, and future investment plans.

Last year, the South Korean government and major companies announced plans with Nvidia to expand AI infrastructure and industrial cooperation, including the introduction of more than 260,000 GPUs in total. The committee decided to continue monitoring the implementation of each project to ensure that existing cooperation projects proceed smoothly.

Reviewing GPU Supply Chain Diversification and Expanded Use of Domestic AI Semiconductors

Cooperation projects between Nvidia and South Korean companies in AI infrastructure, semiconductors, manufacturing AI, and physical AI were also included in the review. The committee will examine the potential impact on the government's three mega-projects and, if necessary, develop support measures in coordination with relevant ministries.

The committee also discussed measures to reduce dependence on any single company. It decided to assess the potential use of a range of AI computing resources, including neural processing units (NPUs) as well as GPUs, and explore ways to strengthen the competitiveness of South Korean AI semiconductor companies and stabilize the supply chain.

Shin Jinwoo, chair of the Technology Innovation and Infrastructure Subcommittee of the National AI Strategy Committee, said, "This development underscores the need for national AI infrastructure to be structured so that it remains resilient to changes in the business conditions of any particular company. We will continue our cooperation with Nvidia without change, while increasing the utilization rate of the GPUs we have secured and strengthening our operational capabilities. We must also expand our range of computing resources, including domestically developed AI semiconductors."

The committee plans to strengthen information sharing among relevant ministries, including the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy, and domestic semiconductor and AI companies, while continuing to monitor the progress of key cooperation projects and any challenges they face.

Ha Jung-woo, standing vice chair of the National AI Strategy Committee, said, "We will work closely with relevant ministries and companies to proactively respond to the impact of Nvidia's executive changes on the global AI industry as a whole. To turn the uncertainty arising from this change into a new opportunity, we will strengthen our competitiveness by linking efforts to expand domestic AI infrastructure with strategies to foster the physical AI ecosystem."

This content was produced with the assistance of AI translation services.