Seoul: Samsung Group and SK Group have announced a significant investment totaling 896 trillion won (approximately US$578 billion) in South Korea's southwest region. This initiative aligns with the government's strategy to promote growth in the artificial intelligence (AI) industry, as revealed by the Ministry of Trade, Industry, and Resources on Tuesday.
According to Yonhap News Agency, the Ministry of Trade, Industry, and Resources has committed to supporting the smooth implementation of these substantial investment pledges. This announcement follows the government's introduction of the tripolar mega projects, designed to advance technological capabilities nationwide and establish South Korea as a leader in the AI era.
SK Group plans to invest 470 trillion won in the southwest region, focusing on the construction of two semiconductor fabrication plants and a 1-gigawatt AI data center. Specifically, chipmaker SK hynix Inc. will allocate 400 trillion won for the development of two memory chip fabrication facilities in the region. This broader initiative aims to secure a total investment of 1,100 trillion won, creating an AI memory manufacturing belt stretching from existing semiconductor bases in Yongin and Icheon to the southwest.
"The AI industry has moved beyond the training phase and entered an era in which AI services are being deployed at scale," stated SK hynix CEO Kwak Noh-jung. "Given projections for explosive future demand, the Yongin Semiconductor Cluster alone will not be sufficient to meet future demand, making a new semiconductor cluster necessary." Additionally, SK hynix plans to establish 15 gigawatts of AI data center infrastructure across the nation.
Samsung Group's investment of 425 trillion won will be directed toward building two memory fabs and an AI computing center in the region. The focus of this investment plan is on creating a world-class semiconductor cluster, expanding AI computing infrastructure, and fostering future energy industries. Samsung Electronics Co. will invest 400 trillion won to construct two new semiconductor fabrication plants in Gwangju, with the aim of transforming it into a global semiconductor manufacturing hub.
In addition to Samsung and SK's commitments, Amkor Technology, a multinational semiconductor back-end company, has pledged to invest 1 trillion won to expand its packaging facility in Gwangju.
To facilitate these investments, the industry ministry has launched the S-WEST Vision, which promises government support in securing necessary resources such as sites, water, electricity, institutional backing, and talent. The ministry emphasized that this 896 trillion-won investment will reshape the economic landscape not only of the southwestern region but also of the entire nation.
The government is committed to ensuring these investment pledges translate into tangible outcomes, with proactive support to guarantee their realization.