Samsung Group is reportedly planning to invest around 1,000 trillion won (approximately US$650 billion investment) over the next decade to strengthen South Korea’s semiconductor industry and support the country’s growing ambitions in artificial intelligence (AI).
The proposal is expected to be presented during a meeting with South Korean President Lee Jae Myung, where leading businesses will discuss long-term investment plans aimed at driving economic growth and technological innovation.
Although Samsung has not officially confirmed the reported investment, the plan highlights the company’s focus on expanding its semiconductor manufacturing business at a time when AI is driving unprecedented demand for advanced chips.
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The investment is also expected to include AI infrastructure, batteries, and display technologies, reflecting Samsung’s broader strategy to remain competitive across multiple high-tech sectors.
Investment to Expand Chip Manufacturing Capacity
A significant portion of the proposed investment—around 300 trillion won (US$195 billion)—is expected to go toward developing a new chip manufacturing hub in South Korea’s southwestern region. The project is designed to reduce the concentration of chip production around Seoul while encouraging industrial growth in other parts of the country.
The new facilities would produce advanced semiconductors used in AI systems, AI data centers, and next-generation electronic devices. As AI applications continue to grow, demand for high-bandwidth memory (HBM) chips and advanced processors has increased sharply, prompting chipmakers around the world to expand production.
Samsung, the world’s largest memory chip manufacturer, has been investing heavily in both memory and foundry business operations. The company is also working to strengthen its position in AI-related semiconductors as global competition continues to intensify.
AI Boom Shapes South Korea’s Long-Term Strategy
The proposed investment comes as South Korea places greater emphasis on AI and semiconductor manufacturing as key drivers of future economic growth. Government officials believe the rapid rise of AI is creating opportunities for domestic companies while increasing the need for faster expansion of semiconductor production.
Presidential policy adviser Kim Yong-beom recently said Samsung Electronics and SK Hynix may need to bring forward expansion projects that were originally planned for the 2040s. Instead, these investments may need to be completed by the mid-2030s to keep up with rising global demand for AI chips.
The government also sees the project as an opportunity to strengthen regional economies by creating new jobs and attracting supporting industries. New manufacturing facilities are expected to encourage investment across the semiconductor supply chain, including research, equipment, materials, and logistics.
The reported plan also reflects the growing global race to secure semiconductor production. Countries such as the United States, China, Japan, and members of the European Union are investing heavily in domestic chip manufacturing to reduce supply chain risks and strengthen technological competitiveness.
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While Samsung has not officially announced the investment, industry analysts believe the reported proposal demonstrates the company’s long-term commitment to AI and advanced semiconductor technologies. If approved, the decade-long investment would rank among the largest corporate spending plans ever announced and further strengthen Samsung’s position as a key player in the global semiconductor market.