How Jensen Huang’s Nvidia exit over China spy scandal could hurt South Korean chip giants Samsung and SK hynix

South Korea’s semiconductor industry is facing fresh uncertainty following Nvidia chief executive Jensen Huang’s resignation amid a controversy that has raised questions about possible tighter US scrutiny of artificial intelligence (AI) chip exports to China and the safeguards governing the global semiconductor supply chain.

Huang has stepped down as Nvidia’s CEO, president and board member with immediate effect, according to reports on Thursday, 12 November.

The company has appointed its chief financial officer Colette Kress as interim CEO while it searches for a permanent successor.

Nvidia has also named entrepreneur and investor Harvey C. Jones as its first-ever chairman, The Associated Press reported the developments.

The developments could have implications for Samsung Electronics and SK hynix, two of South Korea’s biggest memory-chip makers and key suppliers of high-bandwidth memory (HBM), a crucial component in Nvidia’s AI accelerators, The Straits Times reported.

Any move by Washington to tighten export controls or compliance requirements could reportedly affect how these companies supply memory components to the global AI industry. It could also increase scrutiny of shipments involving third countries, potentially adding costs and delays for suppliers.

The controversy has also put the spotlight on Huang’s close relationships with South Korea’s technology leaders, particularly Samsung Electronics executive chairman Lee Jae-yong and SK Group chairman Chey Tae-won.

Their high-profile ties with the Nvidia chief, often described as a semiconductor ‘bromance’, have helped strengthen cooperation on AI infrastructure and advanced chips.

Analysts cited by the South China Morning Post have said Huang’s direct engagement with South Korean executives has helped accelerate business discussions and partnerships.

During visits to Seoul, Huang frequently opted for informal dinners and social gatherings with business leaders rather than relying solely on formal boardroom meetings.