NVIDIA and SK Group Forge AI Factory to Revolutionize Korea's Manufacturing
Timothy Morano Nov 01, 2025 07:50
NVIDIA and SK Group are collaborating on an AI factory in Korea, featuring over 50,000 GPUs to enhance semiconductor and cloud infrastructure developments.
NVIDIA and SK Group have announced a significant partnership aimed at establishing an AI factory in Korea, a move poised to advance the country's semiconductor and digital infrastructure, according to NVIDIA Newsroom. This strategic collaboration seeks to harness artificial intelligence to drive innovation across multiple sectors, including chip design, robotics, and AI agent development.
AI Infrastructure Expansion
Central to this initiative is the construction of an AI factory equipped with over 50,000 NVIDIA GPUs, anticipated to be one of Korea's largest. The facility, set for completion by 2027, will cater to SK subsidiaries such as SK hynix and SK Telecom, as well as other external entities. This GPU-as-a-service model aims to accelerate Korea's digital transformation.
Technological Advancements
The partnership extends to the development of high-bandwidth memory (HBM) and advanced memory solutions tailored for NVIDIA GPUs, enhancing semiconductor manufacturing and telecommunications infrastructure. SK hynix plans to leverage NVIDIA's CUDA-X technologies to expedite chip design processes through AI physics, significantly improving the precision and speed of technology computer-aided design simulations.
Digital Twin and Robotics Innovation
SK hynix is also pioneering digital twin technology using NVIDIA Omniverse libraries and RTX PRO Servers, aiming to create self-optimizing fabs that increase production efficiency. Additionally, SK Telecom is set to launch an industrial AI cloud powered by NVIDIA RTX PRO 6000 Blackwell GPUs, facilitating advancements in digital twin and robotics technologies.
Broader Implications
This initiative is part of a broader effort to integrate AI into Korea's industrial landscape, with NVIDIA's CEO Jensen Huang noting the transformative potential of AI factories. SK Group chairman Chey Tae-Won emphasized the role of AI in transcending traditional manufacturing limitations, enhancing scale, speed, and precision.
The AI infrastructure will support the Korea government’s Sovereign AI Foundation Models project, with SK Telecom contributing as a model developer. This will provide foundational models for enterprises and researchers focusing on AI agent and application development.
As part of the ongoing efforts, SK hynix is deploying AI-powered agents using NVIDIA's NIM microservices and AI Enterprise software, aiming to boost productivity among over 40,000 employees by facilitating faster problem-solving and collaboration.
Image source: Shutterstock.jpg)