Key facts
- South Korea's Samsung Electronics and SK Hynix will invest approximately $518 billion in four new chip plants.
- The investment aims to double the country's DRAM output within five years, accelerating previous targets.
- The surge in AI demand is the primary driver for this accelerated investment.
- SK Hynix plans a U.S. stock listing valued at around $29 billion to support its expansion.
- This significant capital allocation to AI chips contrasts with record outflows from U.S. spot bitcoin ETFs.
South Korea has announced a significant national strategy to invest US$650 billion in artificial intelligence and semiconductor industries, aiming for global market leadership. As part of this, Samsung Electronics and SK Hynix are committing approximately $518 billion to construct four new chip fabrication plants. These facilities are intended to double the country's output of DRAM, a standard memory type, within five years, with an accelerated completion target of 2034 or 2035, a decade ahead of previous plans. This massive capital injection is driven by the surging demand for high-bandwidth memory (HBM) chips essential for AI training and large language models. SK Hynix, which has become South Korea's most valuable listed company, is also planning a substantial $29 billion U.S. stock listing to fund further expansion. The intense focus and capital allocation towards AI chips are drawing significant investor attention and funds, a trend that contrasts sharply with record outflows from U.S. spot bitcoin ETFs and weaker cryptocurrency prices.