Samsung and SK Hynix announce $518B chipmaking hub in South Korea
9 reported
South Korean tech giants Samsung Electronics and SK Hynix said Monday they will invest a combined 800 trillion won ($518 billion) in building a new computer chip manufacturing hub in the country’s southwest region, capitalizing on surging artificial intelligence-driven demand. President Lee Jae Myung joined the companies’ chairs in announcing the plan, which aligns with government efforts to expand investment beyond the greater Seoul metropolitan area. Samsung and SK Hynix, which together produce about two-thirds of the world’s memory chips, said they will each build two fabrication plants in the southwest. Samsung Chairman Lee Jae-yong said the company’s new fabs will be built in the southwestern city of Gwangju, where experts have proposed several potential sites, including the grounds of a military air base slated for relocation. The companies did not specify when the fabs would be completed. Government officials dismissed questions about whether the southwest has enough power and water to support major semiconductor fabs, citing the region’s strength in renewable energy.
What’s reported
Samsung Electronics and SK Hynix plan to invest 800 trillion won ($518 billion) in a new chipmaking hub in South Korea’s southwest region.
The announcement was made Monday by President Lee Jae Myung and the companies’ chairs.
Samsung and SK Hynix each plan to build two fabrication plants in the southwest.
Samsung Chairman Lee Jae-yong said the new fabs will be built in Gwangju, with potential sites including a military air base slated for relocation.
The companies did not specify completion dates for the fabs.
SK Hynix Chairman Chey Tae-won said the project requires “vast sites, along with sufficient power, water and skilled workers” and noted it took nine years to establish its Gyeonggi Province cluster.
Government officials said the region’s renewable energy strength would give chipmakers an edge amid global pressure for cleaner electricity.
Samsung and SK Hynix have reported record profits in recent months due to AI-driven demand for memory chips.
Government officials outlined plans for a nationwide semiconductor ecosystem, with existing hubs expanding production of components and materials.
Key figures
Lee Jae Myung, President of South Korea
Lee Jae-yong, Chairman of Samsung Electronics
Chey Tae-won, Chairman of SK Hynix
Sources: abcnews.com
