South Korean Tech Giants to Build a $518 Billion Chipmaking Hub to Serve Soaring AI Demand

What happened

On June 29, South Korean President Lee Jae Myung joined Samsung and SK Hynix chairs to announce a combined 800-trillion-won ($518B) investment in a new chip manufacturing hub in southwest Korea.

Context and impact

Samsung and SK Hynix produce about two-thirds of global memory chips and have posted record profits on AI buildout demand. The project expands capacity beyond the Seoul metro and aims to cement Korea's position in the global AI supply chain.

Details

• Total investment ~800T won (~$518B)
• Samsung and SK Hynix to each build 2 fabs
• Located in southwestern South Korea
• Together they make ~2/3 of global memory chips
• Announcement under President Lee Jae Myung