Samsung, SK Hynix to Supply Gear for OpenAI's Stargate

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00:00So talk us through first and foremost, we've got Samsung SK Hynix, of course, basically Asian players

00:05winning contracts with OpenAI and Stargate. But this is as the leadership in Washington

00:11are really pushing for more domestic manufacturing. Just talk us through it.

00:15Well, when you think about it, you have to look at it in the broader AI context. And for the Trump

00:21administration, this would certainly support their goal of propelling investment in Stargate,

00:26in OpenAI, in that big data center project that the president heralded at the beginning of his term.

00:32But there were a few questions left unanswered. One is the price tag. And will this help support

00:37what is part of a trade deal with South Korea that calls for as much as $350 billion in

00:44South Korean investment in the U.S. over the next several years? Also left unanswered is where all

00:50of this high bandwidth memory is going to be produced, Caro. We don't know whether this is

00:55going to be made in Asia or if they may try to do some of this production in the U.S. And that is

01:01certainly a goal of the U.S. and of the Trump administration to onshore more of that chip

01:06production. And so there may be more pressure from the administration on these two companies,

01:11on the government in Seoul, to try to make some more of that happen.

01:16Shep, another headline out of D.C. Trump's proposed changes to visa rules are sailed by the chip

01:22industry. What's the team been reporting on here? Well, this is another cross current that we're

01:28seeing here in Washington. And that is namely that for all of the push on getting manufacturing

01:37onshore here, there is a tension over the workforce. And we have heard administration officials talk

01:42about trying to develop the workforce. But the industry has outlined a major challenge. And that

01:47is simply that the country is not producing enough graduates here in the U.S. to meet the potential

01:52demand of all of that manufacturing and data center and AI expansion that is projected to happen over

02:00the next five years. There is an estimated 67,000 job gap, according to the semiconductor makers.

02:07Now, what we're seeing is pushback from chip makers against an administration plan to crack down

02:13on the F1 student visa. This is a key pipeline for talent in the tech industry. It is something that

02:20they have relied on for years. Students currently are able to stay for an indefinite period as long

02:26as they're actively in a course of study. But the administration wants to shorten that to four

02:30years. And industry is saying, look, a less friendly approach to immigration will drive away talent to

02:36other countries that are more welcoming and it will hurt competition. One CEO wrote in an unnamed chief

02:43executive from a semiconductor company wrote in to say that they were deeply troubled to see this

02:48and that it will harm competitiveness for the industry here in the U.S. And this comes as also

02:53the administration is raising the fee for H-1B visas to $100,000 for new applications. And for chip

03:01companies, that could mean hundreds of millions of dollars in additional fees trying to get all that

03:07talent here in the U.S. to meet this demand that they have for jobs.