If Nvidia's CEO is removed, Korean memory makers could gain more customers

A what-if, not a decision

As Electronic Times reported, Jensen Huang's future at Nvidia is uncertain, and the paper explores what would follow if he were dismissed. This is analysis of a possible outcome. Our own briefing has seen only secondhand reports that the board is weighing his removal, with no confirmation from Nvidia.

The paper's starting point is that Huang is a founder-CEO who shaped the company's technology strategy and expansion. Losing him would test the company's leadership, even though chip supply contracts would not vanish overnight.

Where delays could hit

The risk the paper describes is slower decisions rather than a sudden stop. If a successor is not settled quickly, long-term investments and relationships with customers and partners could become harder to manage. New product launches and investment schedules could slip too.

The research firm Melius Research called the lack of a clear successor a risk factor. New leaders might also change priorities or approval steps, and customers would then have to adjust their own rollout plans.

Scale makes this matter. Nvidia is said to hold 80~90% of the AI chip market, so any change in its supply strategy would reach materials and equipment makers, chip foundries (contract manufacturers) and memory partners.

AMD and Intel see an opening

Demand for AI data centers is still strong, so the chips will not suddenly become useless. If customers worry about Nvidia's product schedules or support, though, some may speed up testing of alternatives.

The paper names AMD's Instinct GPUs, which it sells alongside an open software platform called ROCm, as the most direct beneficiary. Intel could offer its Gaudi line of AI accelerators, especially to companies that care about cost and a wider pool of suppliers.

A big switch would still take time. Many Nvidia customers have built up software and operating experience on CUDA, Nvidia's programming platform. Changing suppliers means extra testing and switching costs.

What it means for Samsung and SK hynix

Samsung Electronics and SK hynix supply HBM (high-bandwidth memory, the fast memory placed next to AI processors), and Nvidia is a core customer for both. The paper says they reportedly signed supply deals covering a considerable period, so a Huang dismissal is not expected to affect HBM supply right away.

A drawn-out crisis is a different matter. If Nvidia's share of demand shrinks and AMD and others buy more, the Korean firms would depend less on one customer. Some forecasters say that would strengthen their hand in price and supply talks.

Ahn Ki-hyun of the Korea Semiconductor Industry Association said the situation could be an opportunity to widen the customer base for Korean HBM makers. He added that a more varied customer list could raise the memory suppliers' standing.

The investigations are the wild card

The paper says the scandal around Huang is being examined by Nvidia's board and by the FBI, which come at it differently. The board is looking at issues such as leaks of confidential information, ethics violations, the damage done to the company and whether there are grounds for dismissal.

The FBI is more likely to treat it as a national security question about AI chip technology. The paper says Megaspeed, where a woman described as Huang's affair partner once worked, bought trillions of won worth of Nvidia chips. It says many of them may have been illegally moved to China. This is raised as a possibility, not a finding.

If that were borne out, the paper says, the matter would go beyond internal discipline at Nvidia to reviews of deals and shipping procedures, and could bring tighter China export controls. Tighter US controls could in turn affect the wider supply chain, not just chip designers.