Samsung Electronics and SK Hynix are reportedly preparing major long-term investment plans as South Korea looks to strengthen its position in semiconductors, artificial intelligence infrastructure, and next-generation memory chips.
According to CNBC, shares of Samsung Electronics and SK Hynix fell after reports surfaced that Samsung Group and SK Group could unveil investment plans of up to 2,000 trillion won, or about $1.3 trillion, over the next 10 years.
The spending plans are tied to South Korean President Lee Jae Myung’s broader industrial strategy, which is focused on making the country a global leader in AI chips, semiconductor production, physical AI, and data centers.
As part of the initiative, Samsung Electronics and SK Hynix are expected to invest hundreds of billions of dollars in new semiconductor production capacity in South Korea. The South Korean government said the companies will each build two large-scale semiconductor fabrication facilities in the country’s southwest region as part of a new chip production ecosystem valued at about 800 trillion won, or approximately $518 billion.
The semiconductor hub is expected to expand chip manufacturing beyond the existing production centers around Seoul, including Pyeongtaek and Yongin. The new southwest region hub is expected to include sites in areas such as Gwangju and South Jeolla, supporting the government’s effort to spread high-value industrial investment outside the Seoul metropolitan area.
The plans come as demand for AI infrastructure continues to drive growth in high-bandwidth memory, DRAM, NAND, advanced packaging, and data center capacity. Samsung and SK Hynix are two of the world’s most important memory chipmakers, and their products are central to AI servers and accelerated computing systems.
The investment push is also expected to include a chip packaging cluster near Seoul and additional spending on AI data centers. Reuters reported that South Korea is targeting three major “mega projects” focused on semiconductors, physical AI, and AI data centers.
Samsung is expected to invest heavily in semiconductor fabs in Gwangju and high-bandwidth memory facilities in Cheonan and Onyang. SK Group also announced major plans for semiconductor and AI data center investments, while SK Hynix is expected to accelerate its Yongin fab project and invest in a new chip base in the southwest.
The plan is designed to help South Korea strengthen its role in the global AI supply chain at a time when countries are racing to secure advanced chip manufacturing capacity. The country is also seeking to double DRAM output within five years and expand development of high-bandwidth memory chips, which are a critical component for AI accelerators.
However, the scale of the spending plans also raised investor concerns about financing, execution, infrastructure, and possible oversupply. Building new semiconductor fabs requires substantial investment in land, power, water, equipment, logistics, and skilled labor. These projects typically take several years to complete before meaningful production capacity comes online.
For Samsung and SK Hynix, the investments could help secure long-term leadership in memory chips and AI-related semiconductor infrastructure. For South Korea, the initiative represents one of the most ambitious industrial development programs in the country’s history.
