South Korea launches a $576 billion AI and chip offensive

South Korea has announced a massive investment package exceeding $576 billion to cement its global leadership in artificial intelligence and semiconductor technologies. Spearheaded by Samsung and SK Hynix, the projects will establish new manufacturing hubs in the country's southwest.

Scraper SystemJune 29, 2026, 08:54 PM

South Korea launches a $576 billion AI and chip offensive

South Korea has announced it will roll out massive investments totaling more than $576 billion in electronic chips and artificial intelligence over the next few years. The move aims to solidify the country's position among the world's leading powers in semiconductor production and AI technologies.

The package, President Lee Jae-myung's first major economic step in this sector since taking office, combines advanced industrial investments with a strategy to reduce the development gap between the capital Seoul and other regions.

The project, unveiled at a live-streamed event, was attended by senior executives from the world's two largest memory chip makers, Samsung Electronics and SK Hynix, as well as representatives from major firms such as LG Electronics, HD Hyundai Robotics, Korea Electric Power Corporation, and Korea Water Resources Corporation.

"We must secure the fundamental elements of AI faster than any other country," President Lee said in his speech. "Electronic chips, physical AI, and AI data centers form the three axes of our big leap forward."

Lee stated that Samsung and SK Hynix, together with their suppliers, will invest about 800 trillion won ($517.9 billion) to build two new chip manufacturing plants in the country's southwest. He added that the city of Gwangju and the South Jeolla region will allocate between 5 trillion and 20 trillion won to these projects, and that a dedicated chip packaging complex worth 81 trillion won will be built in the Chungcheong region near Seoul.

Emphasizing that the southwestern region's idle energy capacity makes it a major chip manufacturing hub, Lee said, "The existing facilities in Yongin and Pyeongtaek are at maximum capacity. Therefore, we must create massive production capacity in advance through new large-scale investments."

The investments come at a time when demand for AI components and data centers is rapidly increasing, and competition with the US, China, and other Asian countries is intensifying. With this move, South Korea aims to maintain its leading role in semiconductor production and increase its capacity.

South Korea launches a $576 billion AI and chip offensive