South Korea has announced a sweeping $576 billion semiconductor and artificial intelligence investment plan, placing Samsung Electronics and SK Hynix at the center of a national push to strengthen the country’s chip leadership. The strategy is aimed at expanding advanced chip manufacturing, AI infrastructure and regional industrial capacity.
President Lee Jae Myung presented the initiative as part of a broader effort to secure South Korea’s dominance in memory chips and to keep pace with rapid global demand for AI hardware. Reuters reported that Samsung and SK Hynix, along with suppliers, plan to invest about 800 trillion won, or roughly $518 billion, in new production facilities.
A key part of the plan is the construction of two new fabrication sites each by Samsung and SK Hynix in South Korea’s southwest. The government is also encouraging local development beyond the Seoul metro area, with regional authorities expected to support the project and help build a new chip hub.
The investment drive reflects the growing importance of high-bandwidth memory, DRAM and other components needed for AI systems, data centers and next-generation computing. The broader plan reportedly extends beyond chip fabrication facilities, also encompassing packaging infrastructure and other related technology assets that support the overall effort.
Analysts see the move as part of the escalating global race to secure semiconductor supply chains, especially as countries compete to attract investment in AI-related hardware. South Korea’s approach combines public policy, corporate capital and regional development in one of the most ambitious industrial strategies announced this year.
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