Samsung and SK Hynix Closely Monitor Developments at Nvidia

According to company insiders on Thursday, South Korean chip giants Samsung Electronics and SK Hynix are closely monitoring the leadership uncertainty faced by one of their major clients, Nvidia.

As a key supplier of artificial intelligence chips, both companies are assessing potential succession scenarios. Earlier reports indicated that Nvidia's board is considering finding possible successors after CEO Jensen Huang was revealed to have multiple extramarital affairs.

The close ties between Huang, Samsung Electronics Chairman Lee Jae-Yong, and SK Group Chairman Chey Tae-Won have raised concerns that his departure could impact related business relationships.

"If Huang leaves, it will inevitably affect the communication and interaction among industry leaders," said a company insider who wished to remain anonymous. "We cannot rule out the possibility of slowed business negotiations or changes to established plans."

However, some insiders have indicated that existing supply agreements are unlikely to be affected, noting that both companies have historically collaborated with Nvidia executives, including Senior Vice President Jeff Fisher, on detailed business plans.

Additionally, reports suggest that, given the absence of a clear succession plan, even if Huang is replaced, Nvidia is expected to retain key executives to ensure management stability.

"Huang has become an iconic figure in the AI industry, but Nvidia and the entire AI sector cannot be simply equated with him personally," said another company executive who also requested anonymity.

However, this executive cautioned that changes in the regulatory environment or shifts in Nvidia's product roadmap could complicate the production and investment plans of South Korean chip manufacturers in the long run.

"For now, regulatory risks are unlikely to undermine the competitiveness of U.S. companies," the executive added.

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