Samsung, SK hynix monitor Nvidia leadership uncertainty: officials
Nvidia CEO Jensen Huang, second from left, raises a toast during his meeting with Korean tech company leaders at a barbecue restaurant in Mapo District, Seoul, June 5. From left are SK Group Chairman Chey Tae-won, Huang, Naver Board Chairman Lee Hae-jin and LG Group Chairman Koo Kwang-mo. Korea Times photo by Park Si-mon
Korean chipmakers Samsung Electronics and SK hynix are monitoring leadership uncertainty at Nvidia, one of their biggest clients, company insiders said Thursday.
As the major suppliers of chips used in artificial intelligence (AI) accelerators, the two are assessing potential succession scenarios following reports that Nvidia's board is considering possible replacements for CEO Jensen Huang amid allegations of multiple extramarital affairs.
Huang's close ties with Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won have raised concerns that his possible departure could affect business relations.
"If Huang is removed, it could inevitably affect networking among top industry executives," a company official said, requesting anonymity. "We cannot rule out the possibility that business discussions could slow or existing plans could change."
Others, however, said existing supply agreements were unlikely to be affected, noting that the two companies have traditionally worked with Nvidia executives, including Senior Vice President Jeff Fisher, on detailed business plans.
Reports were also made that Nvidia is expected to retain key executives to ensure management stability, even if Huang is replaced, as no clear succession plan has emerged.
"Huang has become an icon of the AI industry, but Nvidia and the broader AI industry cannot be equated with one person," another company official said, also requesting anonymity.
The official cautioned, however, that regulatory changes or disruptions to Nvidia's product road map could complicate the Korean chipmakers' production and investment plans over the longer term.
"At this point, regulatory risks are unlikely to undermine the competitiveness of US companies," the official added.