South Korea Announces $576 Billion AI and Chip Investment Plan Led by Samsung and SK Hynix

South Korea announced three flagship megaprojects on June 29, 2026, totaling over $576 billion in investments to cement its global leadership in semiconductors and artificial intelligence. Samsung Electronics and SK Hynix will invest 800 trillion won ($519 billion) to build semiconductor complexes in the southwestern region, with each company constructing two memory chip fabs and the government helping double memory chip production capacity within five years. SK Group, GS Group, and Naver will invest 550 trillion won to establish AI data centers with 8.4 gigawatts of initial capacity, expanding to 18.4 gigawatts by 2035. President Lee Jae Myung stated the megaprojects' results will determine Korea's fate for the next 20 to 30 years, with the government investing over 30 trillion won in next-generation chips and aiming to make South Korea one of the world's top three AI robot powers by 2030.

Semiconductor manufacturing investment

• ▪Gwangju in the southwestern region is the leading candidate for Samsung Electronics' next semiconductor investment site.
• ▪Samsung Electronics will concentrate investment in advanced chip packaging in the central region, including South Chungcheong Province's Cheonan and Onyang.
• ▪The South Korean government will help Samsung Electronics and SK Hynix double memory chip production capacity within five years.
• ▪Samsung Electronics and SK Hynix will each build two memory chip fabs in the southwestern region as part of the 800 trillion won investment.
• ▪The South Korean government will invest more than 30 trillion won over 15 years in next-generation chips.
• ▪Samsung Electronics plans to expand production of high-bandwidth memory (HBM) chips in South Chungcheong Province's Cheonan and Onyang.
• ▪Samsung Electronics and SK Hynix will invest 800 trillion won ($519 billion) to establish a semiconductor complex in South Korea's southwestern region.

AI infrastructure competition

• ▪President Lee Jae Myung stated that the results of the megaprojects will determine Korea's fate for the next 20 to 30 years.
• ▪South Korea announced three flagship megaprojects on June 29, 2026, focusing on semiconductors, physical AI, and AI data centres to meet surging demand for AI infrastructure.
• ▪President Lee Jae Myung stated that the AI race extends beyond AI models to semiconductors, AI data centers, physical AI, and foundational infrastructure such as electricity and water.

Regional production hubs

• ▪South Korea's central region will become a semiconductor packaging hub under the megaproject plan.
• ▪The South Korean government, Samsung Electronics, SK Group, and other large businesses announced investment plans on June 29, 2026, to promote high-tech investment across the country's southwestern, central, and southeastern regions as part of a broader push for balanced regional development.
• ▪South Korea's southeastern regions will focus on semiconductor materials, parts, and equipment under the megaproject plan.
• ▪Samsung Electronics will focus its investments in physical AI, including humanoid robots and AI data centers for internal use, in Gumi, North Gyeongsang Province.

Data center expansion

• ▪SK Group, GS Group, and Naver aim to establish AI data centers with 8.4 gigawatts of capacity in the initial phase.
• ▪SK Group, GS Group, and Naver aim to expand AI data center capacity to 18.4 gigawatts by 2035.
• ▪SK Group Chairman Chey Tae-won stated that SK Group will invest a total of 1,100 trillion won including memory fabs and data centres.
• ▪SK Group, GS Group, and Naver will invest 550 trillion won to establish AI data centres in South Korea.

Physical AI robotics

• ▪South Korea aims to position physical AI as a national strategic industry by 2030.
• ▪South Korea aims to become one of the world's top three AI robot powers by 2030.

9 sources