Published on 6/29/2026
South Korea has launched a package of giant projects in the fields of electronic chips and artificial intelligence, with investments exceeding $576 billion over several years, in a move aimed at consolidating its position among the leading global powers in the semiconductor industry and artificial intelligence technologies.
The announcement represents the first major economic move by President Lee Jae-myung in this sector since he assumed the presidency, as it links the development of advanced industries and reducing the development gap between the capital, Seoul, and other regions, by directing huge investments to the regions.
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The announcement was made during an event broadcast live, in the presence of the leaders of Samsung Electronics and SK Hynix, the two largest companies in the world for producing memory chips, along with representatives of major companies, including LG Electronics and HD Hyundai Robotics, in addition to the Korean Electricity Company and the Korean Water Resources Company.
President Lee Jae-myung said, “We must secure the basic elements of artificial intelligence faster than any other country. Microchips, physical AI, and AI data centers form the triple axis of our major breakthrough.”
He explained that Samsung and SK Hynix, in cooperation with their suppliers, will invest about 800 trillion won (about 517.9 billion dollars) to establish two new chip manufacturing sites in the southwestern region of the country.
He added that the city of Gwangju and South Jeolla Province will pump between 5 trillion and 20 trillion won into these projects, in addition to additional investments worth 81 trillion to establish a complex specializing in chip packaging in the Cheongcheong area near Seoul.
Huge production capacity
Lee pointed out that the southwest of the country will become a major center for chip production, taking advantage of the abundance of untapped energy in that region, supporting industrial expansion beyond traditional centers.
“To meet the rapidly growing demand for semiconductors, we need to accelerate the completion of the production centers currently under construction,” he said.
He added, “At the same time, we must secure huge production capacity in advance through large-scale new investments, including in the southwest. The current sites, concentrated in Yongjin and Pyeongtaek, have reached their limits.”
These investments come at a time when global competition for the electronic chip industry is intensifying, with growing demand for artificial intelligence components and data centers, as South Korea seeks to enhance its production capabilities and maintain its position among the world’s leading semiconductor producers, in the face of increasing competition from the United States of America, China, and other Asian countries.
