By Oluwakemi Kindness
South Korea will invest 800 trillion won ($518 billion) in its semiconductor industry, marking the country’s largest-ever commitment to chip manufacturing as global demand for artificial intelligence technologies continues to surge.
Industry Minister, Kim Jung-kwan announced the project on Monday, revealing plans to build four new semiconductor fabrication plants in the country’s southwest region.
The initiative forms part of President Lee Jae Myung’s strategy to drive industrial growth beyond the capital, Seoul.
Major technology companies, including Samsung and SK hynix, will spearhead the investment, helping transform the southwest into South Korea’s second major semiconductor production hub.
The government expects the project to strengthen the country’s position in the global chip market.
Officials said the investment responds to rapidly growing demand for AI infrastructure worldwide.
According to the government, global investment in AI data centres could reach about $5.5 trillion by 2030, creating strong demand for advanced memory chips and related technologies.
The government pledged to support the expansion by promoting domestic AI data centres and strengthening the wider semiconductor ecosystem.
The 800 trillion won investment surpasses recent commitments by Samsung Group and Hyundai Motor Group, making it one of the largest industrial projects in South Korea’s history.
