Samsung Group Pledges 2,655 Trillion Won for Semiconductor and AI Projects

Samsung Group pledged combined investments of 2,655 trillion won (US$1,721 billion) on June 29 in line with the government's drive to promote regional development led by the artificial intelligence industry, Yonhap reported. The announcement followed President Lee Jae Myung's unveiling of the "three megaprojects" initiative the same day.

Of the total, 625 trillion won is allocated for the southwestern and southeastern regions along with the central Chungcheong provinces.

The combined investment includes 2,030 trillion won for the semiconductor cluster at Samsung's Pyeongtaek campus, around 60 kilometers south of Seoul, as well as the semiconductor cluster under construction in Yongin just south of the capital. Samsung Electronics Chairman Lee Jae-yong said during a Seoul briefing that the company is considering the southwestern city of Gwangju as a candidate site for a new semiconductor base.

"The establishment of a global cutting-edge chip cluster in Gwangju aims to address exploding demand for chips," the company said, noting it found it necessary to launch a new cluster beyond existing ones and those under construction.

Samsung added that it is considering Gwangju amid expectations for incentives including electricity and water supplies, workforce recruitment and training, and improved settlement conditions. Once completed, a production base in Gwangju would help the region serve as one of the two pillars of South Korea's chip industry alongside the Seoul metropolitan area.

Other affiliates will support efforts to secure AI infrastructure.

Samsung SDS Co. is seeking to build an AI data center in Haenam, 330 kilometers southwest of Seoul. Samsung C&T Corp. will invest in solar energy and nuclear energy-based hydrogen production facilities in the southwestern region.