South Korea Commits Over $1 Trillion to AI Chip and Data Center Expansion

WHO:

CNN - President Lee Jae Myung announced the investment plans.

CNN - Leaders of Samsung Electronics and SK Hynix participated in the announcement.

ABC News - Samsung Electronics and SK Hynix are the two largest memory chipmakers in the world.

Techmeme - SK Group, GS Group, and Naver are involved in the AI data center plans.

WHAT:

CNN - South Korea's total investment in AI chips and data centers is now reported to be $880 billion.

Techmeme - The AI data centers are backed by approximately $357.5 billion from SK Group, GS Group, and Naver, targeting an initial capacity of 8.4GW, increasing to 18.4GW by 2035.

ABC News - An additional 81 trillion won is expected for a chip packaging cluster in the Chungcheong area near Seoul.

Bloomberg Markets - South Korea's total investment in AI chips and data centers is now reported to be $880 billion.

Techmeme - The AI data centers are backed by approximately $357.5 billion from SK Group, GS Group, and Naver, targeting an initial capacity of 8.4GW, increasing to 18.4GW by 2035.

Techmeme - The AI data centers are part of a nationwide initiative across South Korea.

Bloomberg Markets - South Korea's total investment in AI chips and data centers is now reported to be $880 billion.

Techmeme - The AI data centers are backed by approximately $357.5 billion from SK Group, GS Group, and Naver, targeting an initial capacity of 8.4GW, increasing to 18.4GW by 2035.

CNN - President Lee Jae Myung stated, “We must secure the core elements of AI faster than any other country. Semiconductors, physical AI, and AI data centres are the triple axis for our great leap forward.”

ABC News - Samsung and SK Hynix will invest a combined 800 trillion won ($517.87 billion) with suppliers to build two new chip fabrication sites each in South Korea’s southwest region.

Techmeme - The AI data centers are targeting an initial capacity of 8.4GW, increasing to 18.4GW by 2035.

CNN - President Lee Jae Myung stated, “To meet the rapidly increasing demand for semiconductors, we need to quickly complete the production hubs that are currently under construction.”

ABC News - Samsung and SK Hynix will each build two fabrication plants in the southwest region, expanding beyond their existing manufacturing complexes in Gyeonggi Province.

ABC News - Samsung and SK Hynix together produce about two-thirds of the world’s memory chips.

Techmeme - South Korea's plans for new AI data centers are backed by approximately $357.5 billion from SK Group, GS Group, and Naver.

CNN - South Korea's southwestern city of Gwangju and South Jeolla province will invest 5-20 trillion won in the chip projects.

ABC News - An additional 81 trillion won is expected for a chip packaging cluster in the Chungcheong area near Seoul.

ABC News - Samsung Chairman Lee Jae-yong mentioned that potential sites for the new fabs include the grounds of a military air base slated for relocation.

CNN - South Korea will invest over $576 billion in AI chip production and data centers.

ABC News - Samsung and SK Hynix will invest a combined 800 trillion won ($518 billion) in a new chipmaking hub.

Techmeme - Plans for new AI data centers backed by approximately $357.5 billion from various groups were unveiled.

Techmeme - The AI data centers are targeting an initial capacity of 8.4GW, increasing to 18.4GW by 2035.

WHERE:

CNN - The new chip fabrication sites will be located in South Korea’s southwest region, specifically in Gwangju and South Jeolla province.

ABC News - The existing manufacturing complexes are located in Gyeonggi Province, south of Seoul.

Techmeme - The AI data centers are part of a nationwide initiative across South Korea.

WHEN:

Techmeme - The target for the AI data centers to reach 18.4GW is set for 2035.

WHY:

ABC News - Government officials expect AI-driven demand to continue increasing as technology spreads to AI-powered industrial robots and autonomous vehicles.

ABC News - Government officials expect AI-driven demand to continue increasing as the technology spreads to AI-powered industrial robots and autonomous vehicles.

ABC News - The southwest region has historically trailed in economic development and lacks major industrial hubs, making it a focus for investment.

ABC News - The southwest region has historically trailed in economic development and lacks major industrial hubs.

CNN - The investment aims to secure core elements of AI faster than any other country and to narrow regional disparities.

ABC News - The investment is in response to surging demand driven by artificial intelligence technologies.

ABC News - Government officials expect AI-driven demand to continue increasing as technology spreads to various sectors.

HOW:

CNN - The project will require vast sites, sufficient power, water, and skilled workers, as stated by SK Hynix's Chairman Chey Tae-won.

CNN - Samsung and SK Hynix will build two new chip fabrication sites each in the southwest region.

ABC News - SK Hynix's Chairman Chey Tae-won noted that establishing a major manufacturing cluster took nine years in Gyeonggi Province, indicating the complexity of the new project.

ABC News - SK Hynix's Chairman Chey Tae-won stated that establishing a major manufacturing cluster took nine years in Gyeonggi Province.

CNN - Samsung and SK Hynix will build two new chip fabrication sites each in the southwest region.

ABC News - The project will require vast sites, sufficient power, water, and skilled workers, as stated by SK Hynix's Chairman Chey Tae-won.

(UPDATED June 30, 2026 10:13 UTC)

South Korea's total investment in AI chips and data centers has reached a staggering $880 billion, with significant backing from SK Group, GS Group, and Naver, which have committed approximately $357.5 billion. The ambitious project aims for an initial capacity of 8.4 gigawatts, with plans to expand to 18.4 gigawatts by 2035, and will also see an additional investment of 81 trillion won for a chip packaging cluster in the Chungcheong area near Seoul. According to SK Hynix's Chairman Chey Tae-won, the success of this initiative will depend on securing vast sites, ample power and water resources, as well as a skilled workforce.

(UPDATED June 29, 2026 23:19 UTC)

South Korea's total investment in AI chips and data centers has reached a staggering $880 billion, with significant backing from SK Group, GS Group, and Naver, which have committed approximately $357.5 billion to support this initiative. The AI data centers aim for an initial capacity of 8.4 gigawatts, with plans to expand to 18.4 gigawatts by 2035, as government officials anticipate a growing demand for AI technology in sectors like industrial robotics and autonomous vehicles. To further bolster this effort, Samsung and SK Hynix are set to construct two new chip fabrication sites each in the southwest region of the country.

(UPDATED June 29, 2026 19:30 UTC)

South Korea's total investment in AI chips and data centers has reached an impressive $880 billion, with significant backing of about $357.5 billion from major companies like SK Group, GS Group, and Naver. These AI data centers are initially set to have a capacity of 8.4 gigawatts, with plans to expand to 18.4 gigawatts by 2035. Government officials anticipate that the demand for AI will keep rising as the technology becomes more integrated into industrial robots and autonomous vehicles.

(UPDATED June 29, 2026 17:48 UTC)

President Lee Jae Myung emphasized the urgency of securing key elements of artificial intelligence, stating that semiconductors, physical AI, and AI data centers are crucial for South Korea's advancement. In a significant move, Samsung and SK Hynix plan to invest a staggering 800 trillion won, or about $517.87 billion, to develop two new chip fabrication sites in the southwest region of South Korea. Additionally, the new AI data centers aim for an initial capacity of 8.4 gigawatts, with plans to expand to 18.4 gigawatts by 2035, highlighting the ambitious scale of this project, which SK Hynix's Chairman Chey Tae-won noted could take years to establish.

(UPDATED June 29, 2026 14:18 UTC)

President Trump emphasized the urgent need to complete semiconductor production hubs currently under construction to meet rising global demand. In a significant move, Samsung and SK Hynix are set to build two fabrication plants each in South Korea's southwest region, which has historically lagged in industrial development. This ambitious project is supported by approximately $357.5 billion from major companies like SK Group, GS Group, and Naver, although establishing such a manufacturing cluster is expected to be complex, as highlighted by SK Hynix's Chairman Chey Tae-won.

(UPDATED June 29, 2026 12:25 UTC)

South Korea's southwestern city of Gwangju and South Jeolla province are set to invest between 5 and 20 trillion won in new chip projects, while an additional 81 trillion won is anticipated for a chip packaging cluster near Seoul. Samsung Chairman Lee Jae-yong has indicated that potential sites for new fabrication plants could include a military air base that is scheduled for relocation, as the southwest region has historically lagged in economic development and lacks major industrial hubs. SK Hynix's Chairman Chey Tae-won noted that it took nine years to establish a major manufacturing cluster in Gyeonggi Province, highlighting the challenges ahead.

(UPDATED June 29, 2026 10:20 UTC)

President Trump announced that South Korea will invest over $576 billion in AI chip production and data centers, with leaders from Samsung Electronics and SK Hynix participating in the announcement. The two largest memory chipmakers in the world will contribute a combined 800 trillion won, or about $518 billion, to establish a new chipmaking hub, while plans for AI data centers backed by approximately $357.5 billion aim for an initial capacity of 8.4 gigawatts, increasing to 18.4 gigawatts by 2035. The new chip fabrication sites will be located in Gwangju and South Jeolla province, as part of a nationwide initiative to meet the surging demand for AI technologies.