Microsoft and Google have launched a "chip-snatching" mode, sending employees to South Korea, and those who fail to secure chips from Samsung or SK Hynix will be fired
As global AI computing power competition intensifies, high-performance memory such as HBM has become a key strategic resource. Giants like Microsoft, Google, and Meta have stationed their core procurement teams in South Korea to compete for the limited production capacity of Samsung and SK Hynix. However, the advanced production lines of these two Korean companies are operating at full capacity, making it difficult to meet all demands. As a result, technology companies are accelerating the transfer of procurement and supply chain management positions to Asia and are hiring experts with both technical and business capabilities, aiming to build supply advantages by being closer to the manufacturing end to tackle the increasingly severe "chip shortage" challenge
The global supply of artificial intelligence chips is tightening, and executives from tech giants like Microsoft and Google are gathering in South Korea to compete for memory chip supplies from Samsung Electronics and SK Hynix. These executives have established a permanent office in South Korea to secure supply contracts for key AI components such as HBM and DRAM.
According to the Seoul Economic Daily, citing informed sources, Microsoft procurement executives visiting South Korea earlier this month left a meeting in anger during negotiations with a Korean semiconductor company over supply contracts and pricing when the other party stated that "it is difficult to supply under Microsoft's requested conditions." Recently, Google has fired some procurement leaders because these employees failed to sign long-term agreements with suppliers in advance, leading the company to face supply chain risks. Currently, about 60% of the HBM required for Google's TPU is supplied by Samsung Electronics, but when seeking additional supplies from SK Hynix and Micron after demand exceeded expectations, they were refused.
Industry insiders analyze that this reflects the anxiety of global tech giants regarding the AI chip supply chain. Meanwhile, this "chip grabbing" competition is reshaping the talent layout in the industry, with an increasing number of tech companies relocating key procurement positions from Silicon Valley to semiconductor manufacturing hubs like South Korea to connect more directly with upstream suppliers.
Procurement Executives Stationed in South Korea to Compete for Supplies
To cope with the ongoing tight supply of global artificial intelligence chips, core procurement teams from tech giants like Microsoft, Google, and Meta have essentially established a permanent presence in South Korea, striving to reach long-term stable memory supply agreements with Samsung Electronics and SK Hynix. The goals of these executives include not only key HBM products but also a wide range of memory semiconductors such as DRAM and enterprise-grade solid-state drives widely used in AI chips and data center construction.
Currently, in the global high-performance HBM and LPDDR market, SK Hynix, Samsung Electronics, and Micron jointly dominate the supply landscape. According to industry sources, the HBM and DRAM production capacity of the two Korean companies has already been fully booked for next year. The reality of highly concentrated supply forces tech companies to adopt a "frontline stationed" strategy to strive for any possible production opportunities. However, Samsung and SK Hynix's advanced process production lines for HBM are already operating at full capacity and cannot meet all market demands.
The fundamental driving force behind this competition stems from the rigid demand for computing power in the AI industry. Whether it is GPU, TPU, or data centers, their performance heavily relies on high-performance, low-power memory such as HBM and LPDDR. In the context of increasingly fierce AI competition, ensuring a stable supply of key memory has become a strategic priority for tech companies.
Recruitment Strategy Shifts to Asian Markets
Tech giants are accelerating the adjustment of their procurement organizational structure, shifting core memory procurement positions originally located in Silicon Valley or Seattle headquarters to Asia. This strategic layout aims to achieve tighter control over the supply chain and establish a more direct and agile cooperation response mechanism in the locations of major semiconductor manufacturers.
Recently, Google announced a global memory product manager position, seeking professionals capable of formulating procurement strategies for data center-level memory that includes DRAM and NAND flash. Similarly, Meta is also recruiting a global procurement manager for memory chips with the ability to collaborate on technical roadmaps These positions have surpassed the traditional procurement scope, requiring candidates to possess both engineering backgrounds and technical understanding, capable of synchronously advancing technical integration and supply assurance. Industry analysis indicates that by deploying procurement teams with professional capabilities in semiconductor manufacturing hubs such as South Korea, technology companies aim to seize key resources in the increasingly fierce supply chain competition and build more robust supply barriers
