South Korea is preparing a massive AI infrastructure push, with companies including Samsung Electronics (SSNLF), SK Hynix (HXSCL) and Naver (NHNCF) expected to invest at least 1,350 trillion won, or about $880 billion, across chips and data centers. Samsung Group and SK Group plan to build two chipmaking plants each in the southwest, creating a combined 800 trillion won investment aimed at expanding production capacity as AI-driven demand continues to rise. Another 550 trillion won is expected to come from companies including Naver to build 8.4 gigawatts of AI data-center capacity by 2029.
President Lee Jae Myung described the plan as essential for South Korea to stay competitive in chips, AI data centers and physical AI, while calling Samsung and SK Hynix leaders national heroes. Lee said the country is entering an era where the page turns in the blink of an eye, and pledged government support to accelerate the buildout of an AI ecosystem. The government also discussed support through water and power infrastructure, although it did not disclose specific policies or spending.
Samsung and SK Hynix, the world's two largest memory chipmakers, have been accelerating investment as AI demand creates tighter memory supply conditions. Samsung plans to speed up fab construction in the Seoul metropolitan area, develop Gwangju as a new memory manufacturing hub, make Cheonan and Onyang centers for HBM packaging, and deploy humanoid robots at its Gumi fabs. Citigroup said the Korean government-led investment could boost the country's semiconductor supply chain, including chip equipment makers, supported by the promising AI demand outlook and faster greenfield capacity expansion plans.