Analyst claims Microsoft and Google have told execs sent to South Korea to meet Samsung and SK Hynix: Ready to get fired if you fail to…
Microsoft and Google are reportedly threatening their procurement executives with termination if they fail to secure critical memory chip supplies from Samsung and SK Hynix, according to industry analyst reports. The intense pressure reflects the severity of the global memory shortage that has sent RAM prices soaring and left AI companies scrambling for components.Citrini Research analyst Jukan (@jukan05 on Twitter) highlighted reports that purchasing executives from major tech companies are now “practically stationed” in South Korea, desperately negotiating with the country’s semiconductor giants. The stakes are extraordinarily high: Google has already reportedly fired executives responsible for procurement after they failed to secure additional memory supplies, according to Korean industry sources.
Memory crunch forces dramatic personnel measures
The reported firings at Google came after the company’s AI accelerator chip demand exceeded expectations, creating a supply shortage. When Google approached SK Hynix and Micron seeking additional high-bandwidth memory (HBM) volume, both manufacturers responded that securing more supply was “impossible.” Google’s management subsequently dismissed the procurement personnel, holding them accountable for failing to sign long-term agreements in advance and creating supply chain risks.The desperation has reached new levels, with one incident involving Microsoft executives reportedly storming out of a meeting with SK Hynix after being told the company “could not supply under the conditions MS wants.” Industry insiders describe big tech companies placing “open-ended orders” with memory manufacturers, essentially demanding “all the volume you can afford, regardless of price.”
AI boom drives unprecedented demand for memory chips
The global RAM shortage stems from AI companies’ massive appetite for memory components needed to power their data centers. With only three companies worldwide capable of producing high-performance HBM and advanced DRAM—SK Hynix, Samsung Electronics, and Micron—the supply situation has become critical. Both Samsung and SK Hynix have reportedly sold out their entire HBM and DRAM production capacity through next year.Tech companies are now fundamentally restructuring their hiring practices to manage Asian supply chains more effectively. Memory procurement managers traditionally based in Silicon Valley or Seattle are increasingly being hired for positions in Korea, Taiwan, and Singapore, placing experts with engineering knowledge on the ground to simultaneously conduct technical coordination and volume acquisition.The International Data Corporation forecasts the memory shortage will “persist well into 2027,” signaling what the research firm calls “the end of an era of cheap, abundant memory and storage.”
