[Lee Seong-yeop, Professor at the Graduate School of Technology Management, Korea University] South Korea is a semiconductor powerhouse with world-class high-bandwidth memory (HBM) technology. The HBM produced by SamsungElectronics and SK hynix is a core component used in NVIDIA’s artificial intelligence (AI) accelerators. However, manufacturing semiconductors well and operating AI independently are two different matters. If the supply of cutting-edge chips from overseas is cut off or cloud services are restricted, South Korea’s domestic AI industry and public services could also be adversely affected.

The sudden resignation of NVIDIA founder Jensen Huang and allegations of ties to Chinese intelligence agencies demonstrate just how heavily the global AI supply chain is influenced by the decisions of specific companies and their executives.

NVIDIA announced on the 12th (local time) that founder Jensen Huang had stepped down as CEO and from the board of directors. This came four days after the board launched an independent investigation into allegations that he had been targeted by Chinese intelligence activities. NVIDIA did not specify the reason for the resignation, and Chief Financial Officer (CFO) Colette Kress has assumed the role of interim CEO.

The truth behind the allegations has not yet been determined. U.S. Attorney General Todd Blanche stated that no conclusion had been reached regarding whether Alice Huang, a former executive at NVIDIA’s client Megaspede, had acted on behalf of Chinese intelligence agencies. The results of the board’s investigation have also not been disclosed. The chairs of three U.S. House committees have demanded that Jensen Huang and NVIDIA’s general counsel attend closed-door meetings on December 1 and 2, respectively, warning that subpoenas will be issued if they refuse.

A key point to note in this situation is that security concerns regarding the executives of AI companies have escalated into a matter of national security. NVIDIA’s next-generation semiconductor technology, development schedules, and supply chain information are strategic assets that determine U.S. competitiveness in AI. Whereas military and diplomatic secrets and nuclear weapons technology were once the primary targets of espionage, the scope has now expanded to include the executives of AI companies and their core technical information.

This is also the backdrop behind the massive investments in AI by the U.S. and China. While companies prioritize profitability, nations must secure the capability to develop and operate AI even if external supplies are cut off. This is because AI is a foundational technology that underpins not only industrial productivity but also national defense, intelligence analysis, and cyber defense.

Ripple effects are also expected in South Korea. If the U.S. tightens export controls on AI semiconductors to China, demand for HBM destined for China could decline. Expanded investment in AI data centers by the U.S. and its allies could present new opportunities. China’s push for semiconductor localization and restrictions on the import of equipment to South Korean companies’ factories in China are also heightening uncertainty.

South Korea must expand its HBM competitiveness through joint design of next-generation semiconductors and independent AI operational capabilities. It must secure the computational resources needed for defense, public sector, and core research domestically, and develop its own AI chips, models, and cloud technologies to reduce dependence on foreign companies.

AI sovereignty does not lie in the domestic production of every technology. Rather, it is the ability to maintain core functions even when external supplies are disrupted and to independently select the necessary technologies and partners. South Korea must leverage its technological edge in HBM to build AI development and operational capabilities, thereby making the leap from a semiconductor supplier to an AI powerhouse.