South Korea unveils $576 billion AI chip investment with Samsung and SK Hynix to boost semiconductor production and strengthen its global AI leadership.
South Korea is making one of its biggest technology bets yet. President Lee Jae Myung has announced AI and semiconductor projects worth more than $576 billion. The massive investment aims to keep the country ahead in the global AI race. It also supports Lee’s promise to create more jobs and grow economies outside the Seoul metropolitan area. Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won joined the president during the announcement.
The biggest part of the plan will see Samsung Electronics and SK Hynix invest 800 trillion won, about $518 billion. They will work with suppliers to build two new chip factories each in South Korea’s southwest region. In addition, Gwangju and South Jeolla Province will invest between 5 trillion and 20 trillion won. Another 81 trillion won will fund a new chip packaging cluster in the Chungcheong region. According to Lee, the southwest offers enough unused electricity to support large-scale chip production.
Speaking during the launch, Lee said, “We must secure the core elements of AI faster than any other country.” He added, “Semiconductors, physical AI, and AI data centres are the triple axis for our great leap forward.” The president also stressed the need to expand quickly. “Existing sites centred around Yongin and Pyeongtaek have already reached their limits,” he said. He believes new production hubs will help meet the growing global demand for advanced AI chips.
Samsung and SK Hynix already lead the world in high-bandwidth memory chips. These chips power advanced AI systems used across different industries. Even so, experts say building new chip factories outside Seoul will not be easy. They warn that modern fabs need reliable electricity, large water supplies, skilled workers, efficient transport and strong supplier networks. If South Korea delivers on these projects, the country could strengthen its position as one of the world’s leading AI and semiconductor powerhouses.
