Samsung and SK Hynix back KRW800tn South Korea chip plan

Samsung Electronics and SK Hynix are set to invest KRW800 trillion ($518 billion) in new semiconductor fabrication sites in southwest South Korea under a national semiconductor and AI programme unveiled by President Lee Jae-myung.

President Lee Jae-myung presented the strategy alongside executives from Samsung Electronics and SK Hynix. He described the programme as a three-part plan focused on semiconductors, physical AI and AI data centres. Reuters reported that Lee said South Korea must secure core AI components faster than other countries.

The central investment in the programme is KRW800 trillion ($518 billion) from Samsung Electronics and SK Hynix to build new semiconductor fabrication sites in the country’s southwest region. Officials said the wider plan is intended to expand advanced manufacturing beyond Seoul and develop industrial hubs in Gwangju, South Jeolla and nearby areas. Reuters reported that Lee said existing production sites had reached their limits.

Science minister Bae Kyung-hoon said South Korea is targeting KRW550 trillion in AI data centre investment by 2029, with the total programme expected to exceed KRW1,000 trillion by 2035. Reuters also reported that the package includes up to KRW20 trillion in regional government funding and KRW81 trillion for a chip packaging cluster in Chungcheong province. Mobile World Live noted separate speculation that Samsung had earmarked about KRW100 trillion for initial spending on AI data centres, batteries and displays.