South Korea on Monday unveiled three major technology initiatives centered on semiconductors, physical artificial intelligence and AI data centers, as the government joined leading companies including Samsung Electronics and SK Group in announcing long-term investment plans worth trillions of won.
The strategy is designed to strengthen South Korea’s position in advanced manufacturing and artificial intelligence while accelerating the country’s ambition to become one of the world’s leading technology powers over the next decade.
Samsung Electronics announced plans to invest 400 trillion won, or about $259 billion, in new semiconductor fabrication plants in the southwestern city of Gwangju. The company said the location was selected partly because of anticipated government support for infrastructure, including electricity and water supplies, workforce development and residential facilities.
The technology giant also plans to invest an additional 56 trillion won to construct advanced high-bandwidth memory fabrication facilities in Cheonan and Onyang, expanding production of chips that have become critical components for artificial intelligence systems.
In a separate regulatory filing, Samsung said it intends to invest 2,450 trillion won domestically between 2026 and 2040 to strengthen future growth businesses. Of that amount, approximately 2,100 trillion won will be directed toward semiconductor clusters, including ongoing expansion projects in Pyeongtaek and the industrial complex under development in Yongin.
SK Group, South Korea’s second-largest conglomerate, outlined its own long-term strategy, announcing plans for semiconductor investments worth roughly 1,100 trillion won alongside AI data center projects valued at approximately 1,000 trillion won.
Chairman Chey Tae-won said the group expects to invest more than 100 trillion won annually in South Korea over the next decade.
SK Hynix, a key supplier to Nvidia, plans to complete construction of its fourth semiconductor fabrication plant in Yongin by 2033, bringing forward the original completion target by 12 years from 2045, Chey said.
Beyond expanding existing semiconductor clusters in Yongin and Cheongju, SK Hynix also plans to invest 400 trillion won in a new chip manufacturing complex in southwestern South Korea. The company said construction would proceed in stages depending on market demand and future board approvals.
The proposed facility would complement SK Hynix’s existing memory production network in Icheon, Cheongju and Yongin, although executives did not identify the precise location of the new complex.
The South Korean government also announced that SK Group, GS Group and internet company Naver plan to invest around 550 trillion won during the initial phase of an AI data center initiative capable of generating a combined 8.4 gigawatts of computing capacity. Construction is expected to begin during the first half of 2028.
Science Minister Yoo Sang-im said total investment in the AI data center projects could eventually exceed 1,000 trillion won by around 2035.
SK Telecom said in a regulatory filing that financing options under consideration include strategic partnerships with global technology companies, overseas investors and other investment structures.
Alongside the investment announcements, the government unveiled broader industrial objectives, including a goal of making South Korea one of the world’s top three AI robotics powers and the global leader in physical AI by 2030.
Officials said the strategy includes developing industry-specific AI robots, commercializing humanoid robots for 10 major industries beginning in 2028, establishing AI data factories, supporting domestic physical AI foundation models and training 10,000 AI robotics specialists over the next five years.
The announcements represent one of South Korea’s most ambitious technology investment programs to date as competition intensifies among governments and corporations seeking leadership in semiconductors and artificial intelligence infrastructure.
