Samsung Group and SK Hynix unveiled a massive investment plan totaling $646 billion (1,000 trillion won) over the next ten years, specifically targeting semiconductors and artificial intelligence infrastructure. This commitment is the largest corporate spending package ever announced by a Korean company and aims to solidify South Korea's dominance in the global memory chip market. The announcement, made at a presidential briefing, is expected to allocate more than $226 billion (350 trillion won) to chips and AI, with the remaining funds distributed across advanced displays, next-generation batteries, and regional industrial expansion.
This significant investment comes amidst strong cash flow positions for both companies. Samsung's semiconductor division reported an operating profit of $36.1 billion for Q1 2026, while SK Hynix's operating profit reached $27.8 billion in the same period. The two companies, along with Micron, control over 90% of the global DRAM market. Both firms have warned of significant memory shortages extending through at least 2027, and potentially toward 2030 for AI-related memory demand, underscoring the urgency for capacity expansion.
The investment package is supported by South Korea's special semiconductor competitiveness law, set to take effect in August, which includes provisions for cluster support and faster permitting. The plan also details regional allocations, with Honam focusing on memory and display manufacturing, Chungcheong on AI infrastructure and advanced packaging, and Yeongnam on next-generation batteries and foundry capacity. Analysts note that this cycle is different, with AI infrastructure growth consuming hardware at unprecedented rates and customers securing supply years in advance.
Previous estimates for long-term investments were around $471 billion, with about $261 billion in private funding, through 2034-2035. The expanded $646 billion figure reflects increased AI demand projections. SK Hynix is also planning to raise up to $29.4 billion through an American Depositary Receipt listing to fund new fabrication and packaging capacity. The long-term nature of this investment, stretching over a decade, highlights the companies' confidence in sustained AI demand, although cyclical risks remain a consideration for investors.
