Key facts
- Samsung Group will announce a 1,000 trillion won investment in South Korea on June 29.
- The investment will cover semiconductors, AI data centers, rechargeable batteries, and displays over the next decade.
- A significant portion of the investment may go towards building new chip factories.
- This investment is reportedly the largest ever by a South Korean company, equating to half of the nation's GDP.
- Samsung Electronics and SK Hynix are increasing capital expenditure to meet demand for AI-driven semiconductor production.
Samsung Group is set to announce a landmark investment plan of over 1,000 trillion won (approximately $647.53 billion) in South Korea, spread across the next decade. The announcement, scheduled for June 29, is expected to focus on advanced industries including semiconductors, artificial intelligence data centers, rechargeable batteries, and displays. A significant portion, potentially 300 trillion won, is earmarked for building new chip factories in the southwestern region of the country, aligning with the government's policy for balanced regional growth.
This unprecedented scale of investment, equivalent to half of South Korea's annual GDP, aims to solidify Samsung's technological lead amidst a booming semiconductor market driven by AI demand. The company is reportedly seeking to reinvest record profits to find new growth engines and address concerns about its semiconductor business competitiveness. Samsung Electronics and SK Hynix are both accelerating construction schedules and expanding investment in their chip plants to meet surging demand for High Bandwidth Memory (HBM) and other AI-related components.
Samsung Electronics is constructing its Pyeongtaek P5 line, which is anticipated to become the world's largest single semiconductor production facility, with an investment of around 60 trillion won. Meanwhile, SK Hynix is significantly expanding its Yongin cluster, increasing its Phase 1 investment to over 30 trillion won and advancing its operational start date. Samsung Electronics Chairman Lee Jae-yong has reportedly met with President Lee Jae-myung to brief him on the investment plans.
Separately, South Korea's Defense Ministry announced plans to rapidly expand its drone and counter-drone capabilities. This includes training 500,000 "drone warriors" and acquiring more than 20,000 low-cost expendable drones. The military also intends to produce 110,000 drones by 2029 for distribution across units, as part of a broader effort to strengthen unmanned capabilities and counter North Korea.