South Korean semiconductor leaders Samsung Electronics and SK Hynix are preparing to announce investment plans worth a combined 2,000 trillion won, or approximately $1.3 trillion.
According to a Sunday report from the Korea Economic Daily, the investments will focus on expanding South Korea’s semiconductor industry and artificial intelligence infrastructure.
Major Announcement Expected at Government Event
The companies are expected to reveal their plans during a government-led event on Monday.
South Korean President Lee Jae Myung is expected to attend alongside Samsung Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won.
The event forms part of the government’s broader strategy to support regional economic development and strengthen South Korea’s position in the global technology sector.
Samsung and SK Hynix Plan Decade-Long Investments
Samsung reportedly intends to invest around 1,000 trillion won over the next 10 years.
SK Hynix is also expected to announce an investment commitment of a similar size. Together, the two plans could represent one of the largest technology investment programs ever announced in South Korea.
However, the country’s presidential office has not officially confirmed the total value of the investments.
It said only that Samsung and SK Hynix would announce major investment plans during the week as part of the government’s regional development initiative.
Semiconductor and AI Projects Across South Korea
The investment blueprint is expected to spread major technology projects across several regions.
A new semiconductor cluster could be developed in the Honam region. Meanwhile, investments in data centers are expected to focus on the Chungcheong region.
Projects connected to physical AI are likely to be centered in the Yeongnam region. Physical AI refers to artificial intelligence systems used in areas such as robotics, manufacturing and autonomous machines.
This regional approach could help create jobs, attract businesses and support economic growth outside South Korea’s largest urban centers.
AI Chip Demand Drives Global Expansion
The planned investments come as semiconductor manufacturers worldwide increase production capacity to meet rapidly growing demand for AI hardware.
Advanced artificial intelligence systems require powerful processors and large amounts of high-performance memory. As a result, demand for specialized AI chips and high-bandwidth memory has risen sharply.
Samsung and SK Hynix are both competing to benefit from this expansion.
SK Hynix Strengthens Its AI Memory Position
SK Hynix recently overtook Samsung to become South Korea’s most valuable publicly listed company.
The company’s rising valuation has been supported by its strong position in high-bandwidth memory, or HBM, chips. These chips play an important role in AI servers and advanced computing systems.
Samsung remains one of the world’s largest semiconductor manufacturers. However, SK Hynix’s success in the rapidly growing AI memory market has strengthened its position among global chipmakers.
