Chungcheong: Samsung Electronics Co. and SK hynix are set to invest a whopping 392 trillion won (US$252.5 billion) in the central Chungcheong region, focusing on high bandwidth memory (HBM) fabs and packaging facilities. This significant move aligns with the government's ambition to promote artificial intelligence (AI)-led growth, as disclosed by the industry ministry on Thursday.

According to Yonhap News Agency, the investment is a critical part of the government's tripolar mega projects, recently unveiled by President Lee Jae Myung. These projects aim to advance technology across the nation and elevate South Korea as an industrial leader in the AI era. The Ministry of Trade, Industry and Resources shared that Samsung Group has committed to a 140 trillion won investment in Chungcheong Province to develop an HBM fab and packaging facility by Samsung Electronics. Additional plans include creating an organic light-emitting diode and next-generation display production line by Samsung Display Co.

In addition to Samsung's initiatives, SK hynix declared an investment of 100 trillion won in building a NAND flash and advanced packaging fab. The company aims to establish Cheongju as its future hub for NAND flash production, with significant investments planned for M17 fabrication and advanced packaging facilities.

To bolster these efforts, the industry ministry has presented a strategic plan offering tax incentives, policy financing, and government subsidies to support the investment pledges. The government's vision includes fostering a localized industrial ecosystem that supports all business stages, from recruitment and education to manufacturing. As Industry Minister Kim Jung-kwan highlighted, this growth will not only benefit Chungcheong but also drive the advancement of South Korea's industry as a whole.