Seoul: South Korean tech giant Samsung Group has unveiled a 450 trillion-won (US$309.1 billion) investment plan for the next five years, aiming to boost domestic investment following the conclusion of South Korea's trade deal with the United States. Samsung Electronics Co., the leading subsidiary of the conglomerate, plans to initiate construction of a new chip plant framework at its main Pyeongtaek site, focusing on semiconductor manufacturing.

According to Yonhap News Agency, the decision was made during a recent ad-hoc management committee meeting. The new Line 5 chip production facility is expected to commence operations in 2028, addressing the growing demand for memory chips, driven by advancements in artificial intelligence (AI).

Samsung's ICT unit, Samsung SDS Co., will establish a substantial AI data center in South Jeolla Province. The center aims to acquire 15,000 graphics processing units by 2028, providing resources to universities, startups, and small- and medium-sized enterprises.

Additionally, Samsung SDI Co., the conglomerate's battery-making unit, is exploring the possibility of setting up a domestic production line for next-generation batteries, including all-solid-state batteries, possibly located in Ulsan.

Samsung Display Co. plans to start full-scale production next year at its 8.6-generation organic light-emitting diode plant, currently under construction in South Chungcheong.

The announcement follows South Korea's finalized trade agreement with the U.S., which includes a US$350 billion investment package in the U.S. market, leading to a reduction in U.S. "reciprocal" tariffs to 15 percent from 25 percent.

Earlier, leaders of South Korea's major conglomerates, including Samsung, SK, and Hyundai, met with President Lee Jae Myung to discuss follow-up measures after the trade deal, emphasizing continued domestic investment efforts.