Samsung and SK Hynix Pledge $870B for AI Chip Hub

Samsung and SK Hynix announce a $870 billion plan to expand AI chip manufacturing and data centers in Korea over the next decade.

Samsung Electronics and SK Hynix have pledged 1,350 trillion won, approximately $870 billion, to expand semiconductor manufacturing and AI infrastructure in South Korea over a 10-year roadmap. The investment targets AI data centers, memory production, and facilities for batteries and displays. The plan includes equipment for EUV, etching, photomask, CMP, and deposition. SK Hynix will allocate 400 trillion won to its Cheongju facility, while the Southwest Region procures 100 trillion won for a new cluster. The companies intend to build four to five fabrication facilities in the Chungcheong regions, which will contribute 100 trillion won to the hub. With the government accelerating construction by 12 years, the target for these fabs to come online is now 2033. DRAM production is projected to double within five years.