Samsung Electronics and SK Hynix, South Korea's leading memory chipmakers, are set to unveil an unprecedented 1,000 trillion won (approximately $646 billion) investment plan over the next decade. This massive corporate spending package aims to solidify South Korea’s dominance in the global memory chip market through a substantial build-out in semiconductors and AI infrastructure. Around 350 trillion won of this total is specifically earmarked for chips and AI infrastructure, while the remainder will be allocated to advanced displays, next-generation batteries, and regional industrial expansion.
The core of this investment includes the establishment of a new advanced semiconductor cluster in the Honam region, specifically the Jeonnam-Gwangju Special Self-Governing City, which will officially launch on July 1. This new cluster is expected to host memory chip production lines (front-end processes), packaging facilities (back-end processes), and AI data centers. The combined investment from Samsung and SK Hynix in this region could surpass 300 trillion won, with some analysts speculating it could reach 400 trillion won. This marks the first time either company will establish new semiconductor production facilities in the Honam region.
The move is driven by surging demand for AI chips and aligns with the South Korean government's agenda for balanced regional development, particularly the "Five Poles, Three Special Zones" plan. The Honam region was chosen for its rich renewable energy resources like solar and offshore wind, which are crucial for the energy-intensive operations of semiconductor fabs and AI data centers. This strategic shift also aims to alleviate capacity constraints and high infrastructure costs faced by existing semiconductor hubs in the Gyeonggi Province near Seoul. Top executives, including SK Group Chairman Chey Tae-won and Samsung Electronics Chairman Lee Jae-yong, are expected to formally announce these plans at a public-private joint meeting chaired by President Lee Jae-myung on June 29.
