Key facts
- Samsung Electronics and SK hynix will build HBM fabs and packaging facilities in the Chungcheong region.
- The total investment across various companies in the region will reach 392 trillion won (US$252.5 billion).
- Samsung Group's investment includes HBM, OLED, and advanced battery production.
- SK hynix will invest in a NAND flash and advanced packaging fab.
- The government plans to provide tax incentives, financing, and administrative support.
- The initiative is part of a drive to advance AI-led growth and establish South Korea as an industrial powerhouse.
Samsung Electronics and SK hynix are set to construct high bandwidth memory (HBM) fabrication and packaging facilities in South Korea's central Chungcheong region as part of a massive 392 trillion-won (US$252.5 billion) investment initiative. This plan, announced by the Ministry of Trade, Industry and Resources, aims to leverage artificial intelligence-driven growth and solidify South Korea's position as an industrial leader.
Samsung Group has pledged 140 trillion won towards the region, which will include an HBM fab and packaging facility by Samsung Electronics, an organic light-emitting diode (OLED) and next-generation display production line by Samsung Display Co., high-performance package substrate facilities for AI servers by Samsung Electro-Mechanics, and an advanced battery manufacturing factory by Samsung SDI Co.
SK hynix will invest 100 trillion won to build a NAND flash and advanced packaging fab. Additionally, pharmaceutical firm Celltrion Inc. has committed 2 trillion won for a biopharmaceutical manufacturing plant. Other companies are collectively investing 150 trillion won in an AI data center within Chungcheong.
To facilitate these investments, the industry ministry has outlined a strategy that includes tax incentives, policy financing, administrative support, and government subsidies. The government also intends to cultivate a localized industrial ecosystem, enabling companies to manage all business stages, from recruitment and R&D to manufacturing, within the region. Industry Minister Kim Jung-kwan highlighted the Chungcheong region's potential as a convergence hub for people, technology, and industry, asserting that its advanced industry growth will drive the nation's overall industrial expansion.