Google fires senior procurement team over “impossible” HBM supply crunch
Google has dismissed senior procurement executives in South Korea following their inability to secure long-term supply agreements for high-bandwidth memory (HBM), an essential component for the company’s Tensor Processing Units. The dismissals occurred after Google sought additional HBM supplies from SK Hynix and Micron, which informed the company that securing more capacity was not possible.
The incident highlights an escalating global shortage of memory chips, prompting technology companies including Microsoft, Google, and Meta to station procurement executives in South Korea. Microsoft purchasing executives have also encountered supply barriers; a Microsoft executive reportedly ceased negotiations with SK Hynix after the chipmaker indicated it could not meet Microsoft’s conditions.
This supply limitation stems from the concentrated production of advanced HBM and high-performance DRAM. Only three companies globally produce these components: SK Hynix, Samsung Electronics, and Micron. SK Hynix and Samsung Electronics have sold their entire HBM and DRAM production capacity through 2026. Industry sources report that large technology companies are placing open-ended orders for all available volume regardless of price, with Samsung and SK Hynix operating advanced process lines for HBM at full capacity.
Google presently obtains approximately 60% of the HBM for its TPUs from Samsung Electronics. The scarcity has led major technology companies to establish semi-permanent operations in South Korea, with purchasing executives from Microsoft, Google, and Meta reportedly residing in the country to finalize memory supply contracts.