Samsung Electronics and SK Hynix to invest $518 billion in southwest chip plants

Samsung Electronics and SK Hynix said Monday they will invest a combined 800 trillion won ($518 billion) to build four new fabrication plants in South Korea's southwest region. The announcement came during a joint event with government officials. The companies currently produce about two-thirds of the world's memory chips at existing sites in Gyeonggi Province south of Seoul.

Investment details Samsung Electronics will locate its two new plants in the city of Gwangju. SK Hynix did not name specific sites for its two facilities. The companies did not provide completion dates for the new plants. SK Hynix's chairman said the project will require large sites plus adequate power, water and skilled workers.

Regional development plans Government officials said the southwest region offers strong renewable energy resources that could help meet demands for cleaner electricity. They dismissed questions about whether the area has sufficient power and water supplies.

Officials also outlined plans for a nationwide semiconductor ecosystem. Existing hubs in the southeast would expand production of chip components and materials, while the central Chungcheong region would focus on chip packaging. "We must establish the core building blocks of artificial intelligence faster than any other country.

Semiconductors, physical AI and AI data centers are the three pillars of our next great leap forward," the president said.