South Korea Announces $576 Billion AI Chip Investment Plan, Taps Samsung and SK Hynix on June 29

On June 29, South Korea unveiled a sweeping AI chip investment strategy centered on $576 billion in new semiconductor capacity, with Samsung Electronics and SK Hynix each planning to build two new fabrication sites in the country's southwestern region. President Lee Jae Myung cast the initiative as a "great leap forward" anchored on semiconductors, physical AI, and data centers, aiming to secure global dominance and ease infrastructure bottlenecks beyond Seoul. Samsung and SK Hynix will invest 800 trillion won ($518.30 billion) in the new fabs, while local governments in Gwangju and South Jeolla province will contribute 5-20 trillion won. An additional 81 trillion won is earmarked for a chip packaging cluster in the Chungcheong area.
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