Samsung and SK Hynix to Invest $1.3 Trillion Over Decade in Semiconductor Expansion Drive

South Korea's technology giants Samsung Group and SK Group are reportedly preparing to announce investments worth up to 2,000 trillion won (approximately USD 1.3 trillion) over the next decade as part of President Lee Jae Myung's flagship industrial development strategy. According to reports, the investment plans are expected to be unveiled during a meeting at the presidential office, where government officials and corporate leaders will outline a long-term roadmap focused on strengthening South Korea's semiconductor, artificial intelligence and advanced manufacturing sectors.

The reported investment package is expected to include major expansion plans by Samsung Electronics and SK Hynix, two of the world's leading semiconductor manufacturers. Reports indicate that both companies plan to construct four to five new semiconductor fabrication plants in the Gwangju region. Samsung is also expected to establish advanced chip packaging facilities in South Chungcheong Province, while SK Hynix is likely to expand its NAND flash memory production capacity in North Chungcheong Province as part of the broader investment programme.

The announcement is expected to coincide with the launch of the government's "Three Mega Projects for the Great Leap Forward" initiative. Presidential officials have said the programme will outline policy measures designed to accelerate growth in strategic industries, including semiconductors, AI data centres and physical AI technologies. Samsung Executive Chairman Jay Y. Lee and SK Group Chairman Chey Tae-won are expected to present their companies' investment plans during the event.

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The proposed investments reflect the rapidly growing global demand for artificial intelligence chips, advanced memory products and data centre infrastructure. South Korea has been seeking to reinforce its position as a global semiconductor leader amid intensifying competition from the United States, China and Taiwan. The large-scale spending is also expected to support President Lee's objective of maintaining the country's technological leadership while strengthening domestic manufacturing capabilities and creating long-term employment opportunities.

The reported investment plans follow earlier media reports suggesting Samsung alone could commit more than 1,000 trillion won to future expansion. Presidential Policy Chief Kim Yong-beom recently indicated that unusually large investment figures would be announced, with a strong focus on semiconductor production, AI infrastructure and next-generation technologies that are expected to drive future economic growth.

Market analysts believe the proposed programme could significantly benefit South Korea's semiconductor supply chain and related industries. Citigroup said the government-backed investment drive would support sustained growth across the country's semiconductor ecosystem, particularly manufacturers of semiconductor production equipment. Analysts added that rising demand for AI technologies and accelerated construction of new manufacturing facilities could provide long-term momentum for South Korea's technology sector and strengthen its competitiveness in the global semiconductor market.

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