AI Investment: South Korea Unveils $1 Trillion Plan to Expand Chip Manufacturing
President Lee Jae-myung launches large-scale technology projects aimed at strengthening semiconductor production, AI infrastructure and regional economic growth.
South Korea announces a major investment programme to expand semiconductor and AI infrastructure.
South Korea has announced plans to invest around $1 trillion (£760 billion) to accelerate semiconductor manufacturing and expand artificial intelligence (AI) capabilities as the country intensifies competition in advanced technology industries.
The investment forms part of South Korea’s Three Mega Projects, an initiative designed to develop major semiconductor production hubs, AI data centres and robotics infrastructure across the country.
President Lee Jae-myung announced the plan during a televised event alongside executives from Samsung and SK Hynix, South Korea’s two largest semiconductor manufacturers. The strategy aims to stimulate economic activity beyond Seoul and reduce industrial concentration in the capital region.
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Speaking at the event, Lee described advanced technology development as essential to national competitiveness and emphasised the need to move quickly in securing AI-related capabilities.
Under the plan, Samsung and SK Group are expected to help establish a major semiconductor manufacturing hub in the south-west of the country. Additional AI infrastructure projects and technology centres are also planned outside Seoul.
Earlier, President Lee said the initiative represented a matter of national survival as South Korea works to address economic imbalance and long-term population and investment concentration in metropolitan areas.
The announcement comes as regional competitors including Taiwan, China and Japan continue expanding investments in chip production and AI-related infrastructure to meet growing global demand for semiconductors.
South Korean technology companies have emerged among the major beneficiaries of increased spending on AI. SK Hynix, a key supplier to global AI markets, saw strong market growth amid expanding investment in AI data centres.
Global technology companies including Google, Amazon and Meta have also committed substantial spending on AI infrastructure this year, reflecting growing competition across the sector.
The worldwide increase in AI adoption has intensified demand for advanced chips and contributed to supply constraints across semiconductor markets. While companies continue to expand investment, some investors have raised concerns about the pace and scale of spending across the AI industry.
