Samsung Group and SK Hynix, South Korea's leading memory chipmakers, are set to announce a monumental decade-long investment worth 1,000 trillion won (approximately $646 billion). This historic package, the largest corporate spending plan ever by a Korean company, is primarily focused on expanding their dominance in the global memory chip and AI sectors. Over $350 billion of this total is specifically allocated to chips and AI infrastructure, with the remaining capital directed towards advanced displays, next-generation batteries, and the build-out of regional industrial clusters, particularly outside the greater Seoul area. The announcement is expected on Monday, June 29th, at a presidential briefing at Cheong Wa Dae, following discussions between President Lee Jae Myung and Samsung Electronics Chairman Lee Jae-yong.
This massive investment plan aligns with the Lee administration's balanced development agenda, aiming to strengthen regional hubs and alleviate the concentration of advanced industries in the capital. The initiative will see expansion into regions such as Honam, Chungcheong, and Yeongnam, with facilities potentially including both front-end fabs (memory chip production lines) and back-end packaging facilities. The Honam region, rich in renewable energy, is being considered for new production facilities to meet surging AI chip demand, while AI data centers are under discussion for the Chungcheong region. The sheer scale of the investment—exceeding South Korea's government budget of 728 trillion won and approaching half of the country's annual gross domestic product—underscores its significance.
The strategic legal framework supporting this build-out is detailed in the semiconductor competitiveness law, scheduled to take effect in August. This legislation includes provisions for cluster support, accelerated permitting processes, and regional balance in strategic industrial projects. While some analysts and opposition lawmakers question the practicality of establishing a major chip hub in the southwest, citing potential infrastructure and labor challenges, industry experts acknowledge the pressing need for expansion due to unprecedented AI-driven memory demand. Samsung and SK Hynix have not officially confirmed the specific figures, but presidential policy adviser Kim Yong-beom indicated that the investment numbers to be discussed are unusually large, prompting widespread anticipation.
