South Korea: South Korean technology giants Samsung Electronics and SK Hynix on Monday announced plans to invest a combined 800 trillion won (USD 518 billion) to build a major semiconductor manufacturing hub in the country's southwest region, amid booming global demand for artificial intelligence chips.
The announcement was made alongside President Lee Jae Myung, as the government seeks to expand industrial investment beyond the Seoul metropolitan area.
Samsung and SK Hynix, which together account for roughly two-thirds of global memory chip production, will each construct two semiconductor fabrication plants in the southwest, marking a significant expansion beyond their existing facilities in Gyeonggi Province.
Samsung Chairman Lee Jae-yong said the company's new fabrication plants would be located in the southwestern city of Gwangju. SK Hynix Chairman Chey Tae-won said the project would require extensive infrastructure, including large sites, reliable power and water supplies, and a skilled workforce.
Government officials said the southwest region's renewable energy potential would support the expansion and help chipmakers meet increasing global demands for cleaner energy use.
The investment comes as both companies continue to post strong earnings, driven by surging demand for memory chips used in AI data centres and other emerging technologies.
President Lee said semiconductors, physical AI and AI data centres would form the foundation of South Korea's next phase of technological growth.
(With agency inputs from PTI)
