Samsung and SK Hynix Pour $518 Billion into Four New AI-Focused Plants

Massive Semiconductor Investment by Samsung and SK Hynix in South Korea

According to НВ — Техно: On July 4, Samsung Electronics and SK Hynix unveiled plans to invest 800 trillion won (roughly $518 billion) in constructing four new factories in southwestern South Korea. This decision is driven by surging demand for products tied to artificial intelligence (AI). These two companies currently dominate the global memory chip market, together accounting for two-thirds of worldwide production.

Samsung chairman Lee Jae-yong has selected the city of Gwangju as the primary site for the new facilities. Meanwhile, SK Hynix chairman Chey Tae-won emphasized that the project will require vast land areas, stable electricity and water supplies, and thousands of skilled workers. The announcement underscores South Korea’s push to maintain its edge in the fiercely competitive semiconductor industry.

Tech and Infrastructure Expansion

Separately, the development of a cluster in Gyeonggi Province has been underway for nine years. Notably, at the end of June 2026, SK Hynix surpassed Samsung Electronics in market capitalization for the first time in 26 years, becoming the most valuable publicly traded company in South Korea.

South Korean President Lee Jae-myung stressed the importance of technology investment, stating: 'We must build the foundation for artificial intelligence faster than any other country. Semiconductors, physical AI, and AI data centers are the three pillars of our next great leap forward.'

Under the new projects, Samsung and SK Hynix aim to erect four additional plants in southern South Korea, significantly boosting the output of components and materials in the southeastern regions. Central Chungcheong will focus on chip packaging, while data centers will be deployed nationwide. This reflects the companies' commitment to building infrastructure that supports escalating technological demands.

These investments represent a critical step in strengthening South Korea’s position in the global semiconductor market, especially amid rising competition from other nations. Expanding production capacity is also expected to create new jobs and stimulate local economies, benefiting the region. The projects are anticipated to drive technological progress and enhance innovation in the field of artificial intelligence.

The recent investment by Samsung and SK Hynix highlights a significant shift in the South Korean tech landscape. This comes on the heels of SK Hynix's rise as the top company in South Korea, marking a notable change in market dynamics. As these tech giants expand their capabilities, the competition in the semiconductor industry is likely to intensify, shaping the future of AI and technology in the region.