Seoul, South Korea – In a strategic move aimed at bolstering its global technological leadership and rebalancing its economic development across various regions, South Korea launched a series of mega-projects in the semiconductor and artificial intelligence sectors on Monday. President Lee Jae-myung announced an ambitious plan involving massive investments exceeding $576 billion over the coming years.
This announcement represents President Lee’s most significant political and economic move to date, as he seeks to link technological ambitions in artificial intelligence and semiconductors to his national plan to reduce development gaps between Seoul and the rest of the country. Furthermore, it aims to revitalize regional economies.
Alliance of Giants to Support National Ambition
The announcement event, which was broadcast live, featured high-level attendance from leaders of Samsung Electronics and SK Hynix, the world’s two largest memory chip manufacturers. During his speech, the president emphasized the need for swift action, stating, “We must secure the essential components of artificial intelligence faster than any other country. Chips, physical AI, and AI data centers form the three pillars of our great leap forward.”
Production complexes in the southwest
The president revealed that Samsung and SK Hynix, in collaboration with suppliers, will invest approximately 800 trillion won (around $517.9 billion) to establish two new chip manufacturing sites in the southwestern region of the country. He explained that this region was chosen to take advantage of the abundance of untapped energy resources there. He also noted that the existing sites in Yongin and Pyeongtaek have reached their maximum production capacity.
The president revealed that Samsung and SK Hynix, in collaboration with suppliers, will invest approximately 800 trillion won (around $517.9 billion) to establish two new chip manufacturing sites in the southwestern region of the country. He explained that this region was chosen to take advantage of the abundance of untapped energy resources there. He also noted that the existing sites in Yongin and Pyeongtaek have reached their maximum production capacity.
Integration of smart industries
Attendees weren’t limited to chip companies; the president’s office confirmed that representatives from major Korean corporations also participated. These included LG Electronics, HD Hyundai Robotics, the Korea Electric Power Corporation, and the Korea Water Resources Corporation. This reflects a concerted national effort to build a comprehensive digital infrastructure.
In closing, the president stressed the need to expedite the completion of the production facilities currently under construction. This is to meet the rapidly growing global demand for semiconductors. He also affirmed that these large-scale investments will ensure South Korea has a massive production capacity, positioning it at the forefront of the global technology landscape for years to come.
