Samsung, SK hynix pledge $519 bil. for southwestern chip hub

Samsung Electronics and SK hynix will invest 800 trillion won ($519 billion) to establish a semiconductor complex in the country's southwestern region, as part of government-private sector plans to strengthen Korea's position as one of the world's leading semiconductor powerhouses amid a boom in artificial intelligence (AI) industries.

SK Group, GS Group and Naver will also spend 550 trillion won to set up AI data centers to increase the total capacity to 18.4 gigawatts by 2035.

The government, Samsung Electronics, SK Group and other large businesses announced the massive investment plans Monday, as part of the government's three flagship megaprojects focusing on semiconductors, physical AI and AI data centers, designed to meet surging demand for AI infrastructure as the technology reshapes the global industrial landscape.

The projects are also intended to promote high-tech investment across the country's southwestern, central and southeastern regions as part of a broader push for balanced regional development, while relevant plants and infrastructure are currently concentrated around t