Seoul [South Korea], October 2 (ANI): South Korea's top two semiconductor manufacturers Samsung Electronics Co. and SK hynix Inc. will supply OpenAI Inc., the world's largest artificial intelligence (AI) company, with up to 900,000 wafers of DRAM per month by 2029, according to a report by Pulse, the English service of Maeil Business Newspaper Korea.

OpenAI will also build a data center in Pohang, North Gyeongsang Province, in partnership with Samsung SDS Co., and another in South Jeolla Province with SK Telecom Co.

'Samsung Electronics and SK hynix each signed an agreement with OpenAI on Wednesday, announcing their participation as core partners in global AI infrastructure project Stargate, with the duo signing a letter of intent with OpenAI to supply high-performance DRAM of up to 900,000 wafers per month. This includes high-bandwidth memory (HBM), a high-value-added AI semiconductor, which is expected to inject massive momentum into Korea's already booming semiconductor industry,' the report said.

Considering that the global monthly production of DRAM wafers is approximately 1.5 million, 900,000 wafers is a substantial volume. Another notable point is that OpenAI's data centres will be built in Korea.

For its part, OpenAI signed a memorandum of understanding with the Ministry of Science and ICT on Wednesday to establish AI data centers outside the Seoul metropolitan area. The report noted that based on this MOU, OpenAI entered into partnerships with Samsung SDS and SK Telecom to build dedicated AI data centers for OpenAI jointly.

Citing industry experts, the report said that all this follows the announcement in June that Amazon Web Services will build a dedicated AI data center in Ulsan with SK Group, with the moves signaling that global big tech companies are recognizing Korea as a key AI hub for the Asia-Pacific region.

'Korea has all the ingredients to be a global leader in AI - incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem,' OpenAI CEO Sam Altman said during his meeting with President Lee Jae-myung at the presidential office in Yongsan, central Seoul. 'We are excited to work with Samsung Electronics, SK hynix, and the Ministry of Science and ICT via our global Stargate initiative to support Korea's AI ambitions.'

Lee also indicated that the government may consider easing certain regulations, such as financial-industrial separation, to encourage greater investment in the AI sector.

'Industry insiders noted that the suggestion implies that bold deregulation may be on the table to support the massive semiconductor investment needed by Samsung and SK, the report said. (ANI)