RAM shortage so severe, Google told employees to ensure supply in Korea or they would be fired
Google has fired key executives after reportedly failing to secure enough memory chips from Korean suppliers, as a global shortage of high-performance memory semiconductors intensified.
There is a global shortage of memory chips, and the situation is so bad that even the world’s largest technology companies are struggling to ensure supply at any cost. This shortage is largely due to the explosive demand for artificial intelligence hardware. According to a recent report by South Korea’s Seoul Economic Daily (SeDaily), the shortage has caused internal turmoil at Google.
The company has reportedly fired senior executives who were responsible for sourcing high-bandwidth memory (HBM) in Korea after failing to secure supply agreements in South Korea. In particular, memory chips such as HBM, DRAM, and enterprise solid-state drives are now among the most valuable components in the AI supply chain. Without them, even the most powerful AI accelerators are finding it difficult to operate at scale.
According to the report, as competition intensifies, tech giants are finding themselves at the mercy of a small group of Asian suppliers who control global production. The report claims that Google fired purchasing executives responsible for sourcing HBM in Korea because they failed to secure long-term supply agreements.
Microsoft is also facing pressure
And Google is not alone. Similar pressures are being felt across the industry. Microsoft officials have also reportedly traveled to Korea to talk directly with semiconductor companies. This conversation has been tense. According to an industry source cited in the report, suppliers said it was “difficult to supply at Microsoft’s desired terms”, causing a Microsoft executive to walk out of the meeting in frustration.
Purchasing executives from major tech firms including Google, Microsoft and Meta are now effectively deployed to Korea, according to the report citing a semiconductor industry insider. Their sole focus is to secure access to advanced memory products like HBM, DRAM, and ESSD, which are essential for AI chips and hyperscale data centers.
Why so early?
The urgency arises from a difficult reality: Only three companies worldwide can manufacture the most advanced memory chips needed for modern AI workloads – SK Hynix, Samsung Electronics and Micron. Production capacity for the coming year has reportedly already been sold, leaving latecomers with little room for negotiation.
In the case of Google, the company reportedly sources about 60 percent of the HBM used in its in-house tensor processing unit from Samsung Electronics. When demand increased more than expected, Google approached SK Hynix and Micron for additional supply, but were told it was “impossible” to secure more memory. Management reportedly blamed internal teams for failing to anticipate the shortfall and locking up contracts in advance.
Meanwhile, instead of managing purchases from the US, companies are placing memory purchase managers directly in Asia, particularly in Korea, Taiwan and Singapore, where major suppliers are located. The aim is to gain tighter control over interactions and reduce supply chain risk.
