- Samsung and SK Hynix plan to invest a total of $600 billion in chipmaking to meet the growing demand driven by AI technologies.
- Samsung and SK Hynix will each build two new chip fabrication plants in South Korea's southwest region, with a combined investment of 800 trillion won (approximately $518 billion).
- An additional 81 trillion won (around $53 billion) will be allocated for a chip packaging cluster in the central region of South Korea.
- South Korean President Lee Jae Myung announced the investment plans, emphasizing the need to secure global leadership in the semiconductor industry.
- Prices of memory chips have surged to record levels due to a worldwide shortage, further driving the need for increased production capacity.
- South Korea aims to double its dynamic random-access memory (DRAM) output within five years by accelerating the construction of new fabs in the Seoul metropolitan area.
- Samsung Electronics is the world's largest maker of DRAM memory by revenue, followed closely by SK Hynix and Micron.
Samsung and SK Hynix are leading a monumental investment of 800 trillion won ($518 billion) to establish new chip fabrication plants in South Korea's southwest region, alongside an additional 81 trillion won ($53 billion) for a chip packaging cluster near Seoul. This initiative aims to bolster the country's semiconductor capacity amid escalating global demand driven by AI technologies.123478
The South Korean government, in collaboration with these tech giants, envisions the creation of four new memory chip-making plants, diversifying production from existing centers. Industry minister Kim announced plans to double dynamic random-access memory (DRAM) output within five years, expediting construction in the Seoul metropolitan area to the mid-2030s.
Samsung Electronics, the world's largest DRAM maker, and SK Hynix, which together produce about two-thirds of the world's memory chips, have reported record profits as demand for memory chips surges due to increased investment in data centers and AI infrastructure. Samsung Chairman Lee Jae-yong confirmed that the new fabs will be located in Gwangju, while SK Hynix's Chairman Chey Tae-won emphasized the project's complexity, requiring vast sites and skilled labor.
As the AI boom continues, government officials predict sustained demand growth, with plans to develop next-generation memory chips and AI server chips over the next 15 years, ensuring South Korea's technological edge in the global semiconductor landscape.
“Samsung and SK Hynix are set to invest a combined $600 billion in chipmaking facilities to address the growing demand driven by AI technologies. This expansion aims to solidify South Korea's position as a leader in the global semiconductor market.”
WSJ
Financial Times
Yahoo Finance
