As global competition for AI computing power intensifies, high-performance memory such as HBM has become a key strategic resource. Tech giants like Microsoft, Google, and Meta Platforms have stationed their core procurement teams in South Korea to secure limited production capacity from Samsung and SK Hynix.
However, the advanced production lines of the two Korean companies are already operating at full capacity and are unable to meet all demands. To address this, tech companies are accelerating the relocation of procurement and supply chain management positions to Asia and hiring experts with both technical and business expertise, aiming to build supply advantages by being closer to manufacturing hubs to tackle the increasingly severe 'chip shortage' challenge.
The global shortage of artificial intelligence chips is worsening.$Microsoft (MSFT.US)$and$Alphabet-A (GOOGL.US)$Procurement executives from leading technology giants are gathering in South Korea to compete for memory chip supplies from Samsung Electronics and SK Hynix. These executives have established permanent offices in Korea to secure supply contracts for critical AI components such as HBM and DRAM.
According to the Seoul Economic Daily citing insiders, earlier this month, a Microsoft procurement executive abruptly left the negotiation table during price and supply contract discussions with a South Korean semiconductor company after the latter stated it was 'unable to meet Microsoft's requested supply terms.' Recently, Google terminated several procurement managers for failing to sign long-term agreements with suppliers in advance, leaving the company exposed to supply chain risks. Currently, about 60% of Google’s TPU HBM demand is supplied by Samsung Electronics, but when seeking additional supplies from SK Hynix and Micron Technology due to higher-than-expected demand, they were rejected.$Micron Technology (MU.US)$Google faced rejection when requesting additional supplies.
Industry insiders note that this reflects the growing anxiety among global tech giants regarding their AI chip supply chains. Meanwhile, this “scramble for chips” is reshaping the industry’s talent landscape, with an increasing number of tech companies relocating key procurement roles from Silicon Valley to core semiconductor manufacturing regions like South Korea to engage more directly with upstream suppliers.
Procurement Executives Stationed in South Korea to Secure Supplies
To respond to the ongoing global shortage of artificial intelligence chips,$Microsoft (MSFT.US)$、$Alphabet-A (GOOGL.US)$and$Meta Platforms (META.US)$Core procurement teams from major tech giants have largely relocated to South Korea to aggressively pursue long-term stable memory supply agreements with Samsung Electronics and SK Hynix. These executives’ targets include not only critical HBM products but also encompass DRAM and enterprise-grade solid-state drives widely used in AI chips and data center construction.
Currently, SK Hynix and Samsung Electronics, along with Micron, dominate the global high-performance HBM and LPDDR markets. Industry sources reveal that next year's production capacity for HBM and DRAM from the two South Korean firms has already been fully booked. The concentrated nature of the supply side has forced tech companies to adopt a “frontline presence” strategy in a bid to secure any available production capacity. However, advanced process lines for products like HBM at Samsung and SK Hynix are already operating at full capacity and cannot meet all market demands.
The fundamental driving force behind this competition lies in the rigid demand for computing power in the AI industry. Whether it is GPUs, TPUs, or data centers, their performance heavily relies on high-performance, low-power memory solutions like HBM and LPDDR. Against the backdrop of intensifying AI competition, ensuring a stable supply of critical memory has become a strategic priority for tech companies.
Recruitment Strategies Shift Toward Asian Markets
Tech giants are accelerating the restructuring of their procurement organizations, relocating core memory procurement roles from headquarters in Silicon Valley or Seattle to Asian regions. This strategic realignment aims to achieve tighter control over supply chains and establish more direct and agile collaboration mechanisms near major semiconductor manufacturers.
Recently, Google posted a job opening for a Global Commodity Manager for memory products, seeking professionals capable of formulating data center-level memory procurement strategies covering DRAM and NAND flash. Similarly, Meta is recruiting a Global Procurement Manager for memory silicon with expertise in technical roadmap collaboration.
These positions go beyond the traditional procurement scope, requiring candidates to possess both an engineering background and technical understanding, enabling them to simultaneously advance technology integration and supply assurance on a localized level. Industry analysis indicates that by deploying specialized procurement teams in semiconductor manufacturing hubs such as South Korea, technology companies aim to secure critical resources and establish more robust supply barriers amidst increasingly fierce supply chain competition.
Editor/melody