Samsung and SK Hynix invest $518 billion in new South Korean AI chip hub

Samsung Electronics and SK Hynix will jointly invest 800 trillion won ($518 billion) to build a new semiconductor manufacturing hub in South Korea's southwestern region, specifically targeting the booming demand for memory chips driven by artificial intelligence. The two giants, which together produce about two-thirds of the world's memory chips, plan to construct four new fabrication plants—two for each company—in the southwestern city of Gwangju, marking a strategic expansion beyond their traditional manufacturing bases near Seoul. This government-backed initiative, championed by President Lee Jae Myung, aims to strengthen South Korea's global leadership in advanced chip technologies while simultaneously promoting balanced regional economic development by revitalizing an area that has historically trailed in industrial growth. The project is a cornerstone of the country's broader megaproject agenda, linking semiconductor expansion with planned investments in AI data centers and robotics to secure national competitiveness in the AI era.