South Korea Launches $576 Billion AI and Chip Offensive

South Korea announced a massive investment package exceeding $576 billion to strengthen its global leadership in artificial intelligence and semiconductor technologies. Led by Samsung and SK Hynix, new production centers will be established in the country's southwest.

Scraper SystemJune 29, 2026, 08:44 PM

South Korea Launches $576 Billion AI and Chip Offensive

South Korea announced that it will implement massive investments totaling over $576 billion, spread over the next few years, in the fields of electronic chips and artificial intelligence. This move aims to consolidate the country's position among the world's leading powers in semiconductor production and AI technologies.

The package, which is the first major economic step in this sector since President Lee Jae-myung took office, combines advanced industrial investments with a strategy to reduce the development gap between the capital Seoul and other regions.

The project, announced at a live-streamed event, was attended by top executives of the world's two largest memory chip manufacturers Samsung Electronics and SK Hynix, as well as representatives of major firms such as LG Electronics, HD Hyundai Robotics, Korea Electric Power Corporation, and Korea Water Resources Corporation.

In his speech, President Lee said, "We must secure the essential elements of artificial intelligence faster than all other countries. Electronic chips, physical AI, and AI data centers form the three axes of our big leap."

Lee stated that Samsung and SK Hynix, together with their suppliers, will invest approximately 800 trillion won ($517.9 billion) to build two new chip production facilities in the country's southwest. He added that the city of Gwangju and South Jeolla region will allocate between 5 and 20 trillion won to these projects, and in addition, a special chip packaging complex worth 81 trillion won will be constructed in the Chungcheong region near Seoul.

Emphasizing that the southwestern region will become a major chip production center thanks to its idle energy capacity, Lee said, "Existing facilities in Yongin and Pyeongtaek have reached maximum capacity. Therefore, we must create massive production capacity in advance through new large-scale investments."

The investments come at a time when demand for AI components and data centers is rapidly increasing, and competition with the US, China, and other Asian countries is intensifying. With this step, South Korea aims to maintain its leading role in semiconductor manufacturing and increase its capacity.

South Korea Launches $576 Billion AI and Chip Offensive