SEOUL: South Korea will invest nearly $1.2 trillion in semiconductor production and artificial intelligence data centres as it seeks to strengthen its position in the global technology race.
President Lee Jae Myung announced the public-private plan in Seoul, saying the country must move quickly to secure the core foundations of artificial intelligence.
“Speed is the only path to survival. We must secure the core elements of artificial intelligence faster than any other nation,” he said.
Major chip investment
Samsung Electronics and SK hynix will invest 800 trillion won, around $520 billion, in a new semiconductor fabrication hub in South Korea’s southwest.
The project will include four fabrication plants, with each company building two facilities. Industry Minister Kim Jung-kwan said the southwestern region would be developed into a second semiconductor production hub.
The government said approval and construction timelines would be shortened to rapidly expand production capacity and maintain South Korea’s leadership in memory chips.
Data centre expansion
Seoul also announced a separate investment of around 1,000 trillion won, or $650 billion, in artificial intelligence data centres over the next decade.
Science Minister Bae Kyung-hoon said 550 trillion won would be invested by 2029, with further expansion planned by 2035.
Officials say the southwest offers strong renewable energy potential, making it suitable for large-scale technology infrastructure.
Analysts, however, warned that building a new semiconductor ecosystem away from the Seoul industrial base will take time, investment and skilled workers.
The announcement comes as South Korean chipmakers benefit from rising global demand for artificial intelligence infrastructure.
