26.55 trillion won, 22 trillion won! Samsung and SK Hynix announce investment plans one after another

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South Korea’s two major tech conglomerates unveiled unprecedented domestic investment plans on the same day, signaling a new phase in the global competition in AI and semiconductor industries.

On June 29, Samsung Group and SK Group presented their investment blueprints at the “Republic of Korea Grand Leap Three Super Projects National Briefing” hosted by President Lee Jae-myung. Samsung announced a total investment of 26.55 trillion won (about 1.168 trillion yuan), while SK Group plans to invest over 10 trillion won annually in Korea for the next ten years, with the AI data center and semiconductor expansion projects totaling about 22 trillion won (about 968 billion yuan). The combined investment commitment of the two conglomerates exceeds 48 trillion won.

On the same day, the South Korean government announced its largest ever investment plan for the semiconductor and artificial intelligence industries, positioning semiconductors, physical AI, and AI data centers as the “three pillars” for upgrading Korea’s industry, aiming to double DRAM production capacity within five years and propel Korea into the ranks of “AI revolution-leading countries.”

Samsung: 26.55 trillion won covers semiconductors, AI, and new energy

According to the latest Yonhap News reports, Samsung’s investment plan is centered around the Pyeongtaek and Yongin semiconductor clusters, while massively expanding to other regions.

In the core semiconductor clusters, Samsung plans to invest 20.3 trillion won in the Pyeongtaek complex and Yongin National Industrial Park, forming the main part of the overall plan.

In regional investments, Samsung announced to invest 4.25 trillion won in the Honam (Jeolla) area, including 4 trillion won in semiconductors.Samsung Electronics will build a new semiconductor wafer plant in Gwangju and establish a digital twin innovation hub; Samsung SDS will build an AI data center in Solaseado, Haenam, developing sovereign AI infrastructure; Samsung C&T will invest in solar power facilities, hydrogen production from nuclear energy, and green hydrogen R&D demonstration bases in Honam.

In the Chungcheong region, Samsung plans to invest 1.4 trillion won, focusing on HBM wafer plants, next-generation displays, batteries, and AI server substrate packaging. Samsung Electronics will invest 560 billion won in Cheonan and Onyang for the most advanced HBM wafer plant; Samsung Display will build next-generation smartphone foldable and ultra-high-resolution micro display production bases in Asan; Samsung SDI will build a global next-gen battery main factory in Cheonan; Samsung Electro-Mechanics will build the most advanced AI server substrate line in Sejong.

In the Yeongnam region, Samsung will invest 600 billion won, promoting the integration of main manufacturing, AI, and robotics. Samsung Electronics will build a global smartphone manufacturing innovation hub and humanoid robot mass production line in Gumi, with Samsung SDS building an AI data center in the area; Samsung Electro-Mechanics will expand MLCC and substrate capacity in Busan; Samsung SDI will increase investment in solid-state batteries and energy storage systems in Ulsan; Samsung Heavy Industries will build a high value-added shipyard in Geoje.

SK Hynix: 22 trillion won bets on AI data centers and semiconductor expansion

SK Group Chairman Chey Tae-won said at the briefing that the group plans to invest about 10 trillion won in AI data center projects and about 11 trillion won in semiconductor supply expansion projects. “SK will continue to invest more than 10 trillion won annually in Korea over the next decade.”

For AI data centers, SK Group, centered on SK Telecom, plans to build an AI data center network with a total capacity of 15GW. The first phase will build 5GW centers distributed nationwide in units of 0.5 to 1GW; the second phase will expand to 10GW based on electricity, land, and water resource conditions. Chey Tae-won stated, the group’s goal is “to export intelligence rather than products, and build a domestic ‘intelligence market’.”

For semiconductor expansion, SK Hynix will significantly advance the original capacity schedule. Chey announced the Yongin cluster originally planned for completion in 2045 will finish 12 years earlier; to expand DRAM capacity, about 6 trillion won will be invested early in Yongin; to expand NAND capacity, about 1 trillion won will be invested early in Cheongju.

Additionally, to cope with continued memory supply shortages, SK plans to build a new production base in the southwest region, with an estimated investment of about 4 trillion won. This area is believed to meet the requirements for large-scale land, electricity, water, and manpower.

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