South Korea: Samsung and Hynix Expect to Invest KRW 80 Trillion to Build Four Semiconductor Factories
On June 29th, according to foreign media reports, South Korean Minister of Industry and Trade Kim Jong eun announced plans to invest 80 trillion Korean won (approximately 518 billion US dollars) to build four semiconductor manufacturing plants in southwestern South Korea, with Samsung Electronics and SK Hynix planning to build two each.
Kim Jong nam stated that South Korea plans to accelerate approval and construction in the southwest region to rapidly expand storage chip production capacity. The central region of South Korea will focus on developing advanced packaging technology, while the southeastern region will become a center for semiconductor materials, components, equipment, and next-generation power chips.
In addition, South Korea plans to invest KRW 30 trillion in the next 15 years to build the next generation of storage devices.
Earlier that day, South Korean President Lee Jae myung stated that the global competition in artificial intelligence has evolved into a competition between nations, and South Korea must act faster than its competitors in order to take a leading position in the fields of chips, artificial intelligence data centers, and physical artificial intelligence. The South Korean government will mobilize public and private resources to build an integrated artificial intelligence ecosystem, while accelerating the construction of semiconductor production bases already under construction. “We are entering a rapidly changing era. Speed is the only way to survive.”
According to a previous report by Yonhap News Agency, Lee Jae myung will host a report to the public at the Presidential Palace Blue House Guesthouse on the 29th, during which Samsung Electronics and SK Hynix will announce large-scale investment plans. Li Zaiming will briefly introduce the three major project promotion plans in his opening remarks, and each supervisory department will introduce specific policies. Afterwards, Samsung Electronics and SK will respectively introduce their investment plans at the group level. Analysis indicates that the two companies will release investment plans covering Jeolla Province, Chungcheongdo, and Gyeongsang Province, with an expected investment amount of over 100 trillion Korean won (approximately 4.4 trillion yuan) over the next decade. Samsung Electronics President Lee Jae yong and SK Group President Choi Tae won will attend the event.