so bad? RAM is roaming in Korea in search of deals from tech giants like Google, Microsoft
The global RAM shortage has also pushed tech giants into a state of desperation, with executives from Google and Microsoft reportedly flocking to Korea to ensure chip supply. In the industry, chip makers are reportedly calling these semiconductor purchasing managers sent by Silicon Valley firms “DRAM beggars.”
‘Give me some supplies, give me some RAM’, is the appeal of big tech companies to South Korean chip makers as the global semiconductor shortage continues to grow. According to recent reports from South Korean media, executives from major US technology companies are now staying for long periods of time in hotels around Pangyo and Pyeongtaek, the country’s two largest semiconductor hubs, and desperately trying to secure DRAM allocations from Samsung Electronics and SK Hynix.
According to a report by Chosun News, the chip crisis has now become so serious that the situation has become extremely bad. Industry insiders have even begun to refer to these executives as “DRAM beggars”, as competition for memory chips has become so intense.
Why is there a shortage of chips?
The scramble for semiconductors comes at a time when demand for AI hardware is rising. DRAM, a type of memory semiconductor, and high-bandwidth memory (HBM) are no longer the only standard components. They have now become strategic assets for tech companies that are racing against time to gain the edge in AI advancements.
These chips determine how fast companies can build data centers, train large language models and introduce new AI-powered products. Without them, even the most advanced GPUs and custom AI chips can’t function at scale. Hence high demand, limited supply and
Who are the suppliers?
The limited number of players that can meet global demand makes the situation even more difficult. Only three companies: Samsung Electronics, SK Hynix and Micron are currently manufacturing advanced memory chips in the quantities needed for hyperscalers. Production lines are already running at full capacity, with supplies for the coming year said to be almost sold out, leaving late negotiators with little leverage.
South Korean industry sources suggest that semiconductor suppliers now have an unusually strong position of power. Samsung and SK Hynix are reportedly pushing for 50 to 60 percent price hikes on server DRAM, with buyers like Google, Microsoft and others still lining up despite the surge. One insider cited by the outlet suggests the current mood among tech companies is simple, something like, “Let’s go before it gets even more expensive.”
Silicon Valley is hiring senior executives in South Korea
The urgency to secure chips has become so acute that even tech giants are reportedly making changes to the way they manage procurement. Instead of handling deals from the US, companies are hiring senior purchasing managers directly from Asia, particularly Korea, Taiwan and Singapore. These teams are not just negotiating prices, they are reportedly fighting for guaranteed quantities in an industry where a lack of supply could mean losing the AI race.
And it’s not just about money. Memory crunch is now reshaping internal dynamics at some of the world’s largest companies.
Previous reports from South Korea’s Seoul Economic Daily (SeDaily) claimed that Google recently fired senior executives responsible for sourcing high-bandwidth memory in Korea because they failed to secure long-term supply agreements. The move reportedly came after the company found itself unable to obtain additional HBM when demand for its AI infrastructure exceeded expectations. With nearly 60 percent of the HBM used in Google’s Tensor processing units coming from Samsung, the lack of backup options highlights how vulnerable even tech giants can be in today’s supply chain.
And Google is not alone. Microsoft executives reportedly traveled to Korea to negotiate directly with semiconductor companies, but faced strong resistance from suppliers. According to reports, a Microsoft executive stormed out of the meeting by saying it would be “difficult” to meet supply demands under the company’s preferred terms.
