Home / Business and Economy / AI Boom Fuels $500B Memory Chip Investment in South Korea
AI Boom Fuels $500B Memory Chip Investment in South Korea
1 Jul
Summary
- Samsung and SK Hynix commit over $500 billion to new memory fabs.
- An additional $52 billion is allocated for high-bandwidth memory packaging.
- South Korean tech firms will invest $356 billion in AI data centers.
Samsung and SK Hynix, global leaders in memory chip manufacturing, have announced a significant joint investment exceeding $500 billion to establish four new memory fabrication plants in southwestern Korea. This ambitious project also includes an additional $52 billion dedicated to developing a new hub for high-bandwidth memory (HBM) packaging.
These new facilities are expected to begin operations in 2027 and 2028, aiming to alleviate current memory supply pressures and ensure future demands can be met. The investments were revealed during a presidential briefing, where South Korean President Jae Myung Lee encouraged accelerated development in the southwestern region.
Beyond chip fabrication, other South Korean technology and energy firms are slated to invest 550 trillion won ($356 billion) in new AI data centers over the coming decade. This collective financial commitment signals a strong bet on South Korea's continued dominance in the global technology component market.
