Key facts
- South Korea plans to invest over 1 quadrillion won (US$650 billion) by 2035.
- The investment aims to build AI data centers and secure a leading position in the global AI race.
- An initial investment of 550 trillion won is allocated for 8.4 GW of data center capacity by 2029.
- Samsung and SK Hynix plan to invest $518 billion.
- This investment will fund the construction of four new memory fabrication plants.
- The new plants will be located in southwestern South Korea.
- The initiative aims to meet surging global demand for AI chips, particularly high-bandwidth memory.
- The plan encompasses semiconductors, AI data centers, and physical AI.
South Korea has announced ambitious plans to invest more than 1 quadrillion won, equivalent to US$650 billion, by the year 2035. This substantial investment aims to position the nation at the forefront of the global artificial intelligence race, with a primary focus on developing AI data centers. The initiative includes an initial allocation of 550 trillion won dedicated to building 8.4 gigawatts (GW) of capacity by 2029.
In parallel, leading semiconductor manufacturers Samsung and SK Hynix are committing a combined $518 billion towards expanding their AI chip production capabilities. This investment will fund the construction of four new memory fabrication plants located in southwestern South Korea. This expansion is a critical component of a broader national strategy that encompasses semiconductors, AI data centers, and the development of physical AI technologies. The companies aim to address the rapidly increasing worldwide demand for AI chips, with a particular emphasis on high-bandwidth memory (HBM), a crucial component for advanced AI systems.
This dual strategy of investing in both data center infrastructure and advanced chip manufacturing underscores South Korea's commitment to dominating the AI landscape. The significant capital outlay by both the government and private sector highlights the strategic importance of AI and semiconductors to the nation's economic future. The development is expected to bolster South Korea's position as a key global supplier in the rapidly evolving AI ecosystem.