South Korea’s President Lee Jae Myung has announced plans to allocate nearly $1.2 trillion—over two-thirds of its GDP—toward establishing a new chip manufacturing hub and AI data centres over several years.
The plan, supported by Samsung Electronics and SK Hynix, is Lee’s most ambitious attempt to synchronize South Korea’s AI and chip strategies with his commitment to decreasing regional disparities and stimulating growth outside Seoul. Both companies will each establish two plants, investing a total of $520 billion.
The huge cash boost comes as Asia’s fourth-largest economy benefits from a global AI surge — with South Korean memory chipmakers becoming a key part of the rapidly evolving industry.
In his presentation, President Lee Jae Myung said, “Speed is the only path to survival. We must secure the core elements of artificial intelligence faster than any other nation.”
“To meet the rapidly increasing demand for semiconductors, we need to quickly complete the production hubs that are currently under construction… At the same time, we must secure overwhelming production capacity in advance through large-scale new investments, including in the southwestern region. Existing sites centred around Yongin and Pyeongtaek have already reached their limits.”
Samsung Electronics Chairman Jay Y. Lee announced at the event that the company has chosen Gwangju as the location for its new chip cluster. Meanwhile, SK Hynix’s Chairman Chey Tae-won mentioned that the firm requires more time to finalize a site and establish the necessary infrastructure in the southwestern region.
“It took us nine years for us to create a cluster in Yongin. Also, a chip factory requires massive land, power, water and talent,” Chey said.
This initiative aims to leverage increasing AI demand and support growth in regions that have traditionally been neglected.
By CEO NA Editorial Staff
