Samsung and SK Hynix plan to invest over 4 trillion won to build 4 semiconductor factories.

South Korea’s Minister of Trade Industry Kim Jeong-gwan stated that the country plans to invest 800 trillion won (approximately 4.1 trillion Hong Kong dollars) to build four semiconductor manufacturing plants in the southwestern part of South Korea, with Samsung Electronics and SK Hynix each planning to build two.

Kim Jeong-gwan stated that South Korea plans to speed up approvals and construction in the southwestern region to rapidly expand the production capacity for memory chips, with the central region focusing on developing advanced packaging technology and the southeastern region developing into a hub for semiconductor materials, components and equipment, as well as next-generation power chips. In addition, South Korea plans to invest 300 trillion won over the next 15 years to build next-generation memory.

Earlier, South Korean President Lee Jae-myung pointed out that the global AI competition has evolved into competition between countries, and that South Korea must act faster than its competitors in order to secure a leading position in chips, AI data centers, and physical AI. The South Korean government will mobilize both public and private resources to build an integrated AI ecosystem, while also accelerating the construction of semiconductor production bases that are already under way.