Seoul: South Korean conglomerate SK Group has announced an ambitious plan to invest 128 trillion won (approximately US$87.9 billion) in the domestic market by 2028, with a primary focus on expanding its semiconductor manufacturing capabilities to meet the surging demand for artificial intelligence (AI) technologies.
According to Yonhap News Agency, SK Group's Chairman Chey Tae-won revealed these plans during a meeting with President Lee Jae Myung and other business leaders. This strategic move comes in the wake of a recently concluded trade deal with the United States, aimed at bolstering domestic investments by major South Korean companies. The conglomerate's investment strategy includes the construction of four large-scale semiconductor fabrication plants within its Yongin chip cluster, located south of Seoul. The initial investment of 128 trillion won could potentially escalate to 600 trillion won, driven by the increasing demand for AI memory chips, particularly high-bandwidth memory.
SK Group's approach involves a phased expansion, adjusting the construction pace of the new facilities based on market conditions and chip demand. A key component of this initiative is the "Trinity Fab," a collaborative venture between SK hynix Inc., SK Group's semiconductor manufacturing unit, and the government. Located at the Yongin complex, this project is valued at 860 billion won and aims to enhance the domestic ecosystem for semiconductor components. It will function as an open platform and non-profit foundation, benefiting component-making partners, research institutions, and startups.
In addition to its semiconductor endeavors, SK Telecom Co., the group's mobile carrier unit, and SK Broadband Co., its telecommunication arm, are collaborating with Amazon Web Services to establish an AI data center in Ulsan. This facility is expected to become operational by 2027. Chairman Chey emphasized the group's commitment to domestic employment, stating, "We have continued to maintain domestic hiring of over 8,000 employees every year. We plan to help generate job creation of between 14,000-20,000 positions annually."