South Korea has announced one of the world’s largest artificial intelligence and semiconductor investment programs, unveiling a strategy worth approximately 800 trillion won ($576 billion) to reinforce its leadership in AI chips, advanced memory, and semiconductor manufacturing.
President Lee Jae Myung introduced the initiative as part of three national “mega-projects” designed to accelerate AI innovation, expand domestic chip production, and promote economic development beyond the Seoul metropolitan region. The ambitious program is expected to be led by Samsung Electronics and SK Hynix, the country’s two semiconductor giants that dominate the global memory chip market.
Samsung and SK Hynix Lead Massive Semiconductor Expansion
The centrepiece of the strategy is an 800 trillion won ($518 billion) investment by Samsung Electronics and SK Hynix to establish a new semiconductor manufacturing ecosystem in South Korea’s southwest.
The plan includes the construction of multiple advanced semiconductor fabrication plants, while an additional 81 trillion won will be invested in a dedicated semiconductor packaging cluster in the Chungcheong region. The government believes expanding manufacturing capacity will strengthen supply chains for AI processors, high-bandwidth memory (HBM) chips, and next-generation semiconductor technologies.
Samsung is expected to invest 400 trillion won in new semiconductor fabrication facilities in Gwangju and another 56 trillion won in HBM manufacturing plants in Cheonan and Onyang. Overall, Samsung plans to invest 2,450 trillion won domestically by 2040, including 2,100 trillion won dedicated to semiconductor clusters in Pyeongtaek and Yongin.
SK Group has outlined semiconductor and AI infrastructure projects worth about 2,100 trillion won, with SK Hynix planning to complete its fourth fabrication plant in Yongin by 2033 while developing another 400 trillion won semiconductor production base in southwestern South Korea.
AI Data Centres Receive More Than 1,000 Trillion Won Vision
Beyond semiconductor manufacturing, South Korea is positioning itself as a global AI infrastructure leader.
Companies including SK Group, GS Group, and Naver will initially invest 550 trillion won to build AI data centres delivering 8.4 GW of computing capacity by 2028. Total investment in AI data centre infrastructure is projected to exceed 1,000 trillion won by 2035, creating one of the world’s largest AI computing ecosystems.
South Korea Targets AI and Robotics Leadership
The national strategy also focuses on physical AI and robotics. The government aims to commercialize humanoid robots across 10 major industries by 2028 while training 10,000 AI robotics experts over the next five years. In addition, South Korea plans to double DRAM production by the mid-2030s, reinforcing its dominance in memory chips that power AI servers and data centres worldwide.
AI Chip Strategy Supports Long-Term Economic Growth
South Korea’s investment drive reflects intensifying competition in AI infrastructure as governments race to secure semiconductor manufacturing capacity. While investors expressed concerns about potential oversupply, the government believes expanding domestic chip production, AI data centres, advanced packaging, and robotics will strengthen the country’s long-term competitiveness and create new regional economic growth engines.
