Weekly Supply Chain in Asia 2026-W24 (2026-06-04~2026-06-10)

This week South Korea secured priority access to NVIDIA’s next-generation AI accelerators, formalized strategic partnerships spanning AI infrastructure and physical AI applications, and saw significant investments in foundational components like semiconductor substrates.

This Week’s Events

This week, a government-level agreement secured South Korea priority supply of NVIDIA’s next-generation “Vera Rubin” AI accelerator. Announced on June 8th by Deputy Prime Minister Bae Kyung-hoon, this deal ensures uninterrupted GPU supplies, and the government expressed its intent to lead in “physical AI,” an ambition NVIDIA agreed to actively support. This government backing complements substantial private sector investments aimed at bolstering AI capabilities.

LG Group is set to acquire 10,000 NVIDIA Blackwell GPUs, a move estimated to cost trillions of Korean won, to accelerate its “AI Transformation (AX)” initiatives. According to the industry, this procurement is expected to be used for training LG AI Research’s “Exaone” AI model and developing humanoid robots at LG Electronics. This acquisition is part of a broader formalization of a mid- to long-term strategic partnership between LG Group and Nvidia, announced on June 8th. The collaboration spans physical AI, AI infrastructure, and mobility, with joint development plans for reference robots using Nvidia’s Isaac GR00T ecosystem, establishing an autonomous manufacturing ecosystem, certifying liquid-cooling solutions, and building next-generation data centers.

Further deepening this AI hardware synergy, SK Hynix and NVIDIA announced a long-term technology partnership on June 8th to jointly develop next-generation memory for global AI factories. This collaboration will focus on memory solutions for NVIDIA’s advanced platforms, including the Vera Rubin AI supercomputer and the Jetson Thor robotic computing platform. The initiative also includes applying AI to semiconductor design and manufacturing processes and advancing simulation technologies, signaling a forward-looking approach to shaping AI infrastructure.

The foundational components of AI hardware are also receiving significant strategic attention. LG Innotek plans to invest over KRW 2 trillion by the end of next year to expand its AI semiconductor substrate business, addressing an emerging supply shortage that mirrors constraints seen in High Bandwidth Memory (HBM). Global big tech firms and memory manufacturers are urging LG Innotek to increase capacity, with the investment centered on its existing bases in Gumi, South Korea, and Hai Phong, Vietnam; the industry expects mass production to begin in 2028. This substantial investment highlights semiconductor substrates as a critical bottleneck in the AI hardware supply chain, driving a race to secure their supply.

Beyond advanced components, the physical infrastructure supporting AI is also a focus. Gaon Cable, a South Korean cable and wire maker, announced on June 4th that it will supply approximately KRW 35 billion worth of transmission cables for U.S. AI data center power grids, marking its first entry into this market. The company projects related sales to reach KRW 100 billion this year. This development addresses a critical segment of AI infrastructure build-out.

Corporate strategies are also adapting to the AI boom. Samsung Electronics launched a four-week “National Appreciation Festival” starting June 8th, returning semiconductor and AI business growth to consumers via a 20% rebate in Onnuri gift certificates, estimated at KRW 400 billion. This initiative is part of Samsung’s KRW 5 trillion, five-year social contribution plan, framing its AI success as a driver for local economic revitalization and support for small businesses.

Looking Ahead

The intense focus on AI hardware supply chains and strategic partnerships will continue to shape East Asian industry. Key developments to watch in the coming weeks include:

• NVIDIA’s supply allocation strategies and production ramp-up for its next-generation Blackwell and “Vera Rubin” GPUs, which will be crucial for meeting the surging demand from South Korean conglomerates and global clients.
• The impact of semiconductor substrate shortages on AI chip production timelines, and the progress of LG Innotek’s significant expansion plans in Gumi and Hai Phong.
• Further developments in AI infrastructure investments, particularly as companies like Gaon Cable expand their global reach in supporting AI facilities.