South Korea has unveiled an ambitious 800 trillion won ($576 billion) investment programme aimed at cementing its leadership in artificial intelligence and semiconductor manufacturing, with Samsung Electronics and SK Hynix spearheading the initiative. Announced by President Lee Jae Myung, the plan is one of the country’s largest industrial strategies to date and seeks to strengthen South Korea’s position at the centre of the global AI supply chain while driving economic growth beyond the Seoul metropolitan area. As reported by Reuters and Financial Times, the investment will span several years and combine government support with large-scale private sector funding.
Under the programme, Samsung Electronics and SK Hynix, together with their suppliers, will invest approximately 800 trillion won to develop a new semiconductor manufacturing ecosystem in South Korea’s southwest region. The companies plan to build two advanced semiconductor fabrication plants each, while the government will provide additional support for chip packaging facilities, AI data centres, and next-generation semiconductor research. President Lee described semiconductors, physical AI, and AI data centres as the “three pillars” of South Korea’s next phase of economic transformation.
The strategy also aims to address regional economic disparities by expanding high-value manufacturing beyond the capital region. Alongside the private investment, the government will support an 81 trillion won advanced chip packaging cluster near Seoul and fund research into next-generation memory chips, on-device AI processors, and defence-related semiconductors. Industry observers note that surging global demand for AI infrastructure has significantly increased the importance of advanced memory chips, an area where Samsung and SK Hynix already hold leading positions in the global market.
For South Korea, the initiative represents a strategic effort to secure long-term leadership in one of the world’s fastest-growing industries. Analysts say the investment will strengthen the country’s semiconductor ecosystem, attract additional private capital, create thousands of high-skilled jobs, and reinforce its role as a critical supplier of AI chips to global technology companies. As worldwide demand for artificial intelligence infrastructure accelerates, South Korea’s latest commitment underscores the intensifying global race to dominate the future of semiconductor innovation.
