Korea’s chip industry must brace for fallout from Jensen Huang’s departure

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Nvidia shares plunged nearly 9 percent after-hours trading on Thursday. Many Silicon Valley investors regard Huang as irreplaceable and fear that his departure could undermine…

Nvidia Corp.’s board announced on Thursday, local time, that Chief Executive Officer (CEO) Jensen Huang would step down. Following reports of an alleged affair with a woman suspected of having ties to Chinese espionage, as well as further allegations involving a senior company executive, Huang is leaving the stage after reigning as an icon of the artificial intelligence (AI) era.

Huang’s departure is expected to send shock waves through the AI industry and its broader ecosystem. He was instrumental in building the AI industry around graphics processing units (GPUs). Nvidia-designed GPUs rely on key chips made by Samsung Electronics Co. and SK hynix Inc., while Taiwan’s TSMC manufactures the finished products by bringing the components together.

Nvidia’s software platform, CUDA, has become the industry standard for large-scale computing using GPUs. Huang envisioned a data center-centered AI ecosystem and prompted major technology companies to pour astronomical sums into the sector. Without him, the AI industry might have taken a very different shape.

Nvidia shares plunged nearly 9 percent after-hours trading on Thursday. Many Silicon Valley investors regard Huang as irreplaceable and fear that his departure could undermine U.S. competitiveness in AI. Tesla Inc. CEO Elon Musk also voiced agreement with such concerns.

Huang’s role in running Nvidia has been nothing short of pivotal. It remains uncertain whether the company can continue to lead the AI industry as it has done under his leadership. Efforts to move away from GPU-based industry standards could accelerate, while growth across the AI sector could slow.

All these changes will have direct and indirect implications for Korea’s semiconductor industry.

Korean chipmakers and Nvidia have maintained what has been described as a “best buddy alliance,” and their fortunes have appeared closely intertwined. The risks Nvidia faces following Huang’s departure could spill over into Korea’s semiconductor sector.

Conversely, this…

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