Seoul \u2013 Samsung Electronics and SK Hynix are making one of the biggest bets yet on the artificial intelligence boom with investments worth hundreds of billions of dollars, but the planned capacity buildout is stoking fears of a painful reckoning if AI spending cools.<\/p>\n
The tech giants won praise \u2014 and a deep bow \u2014 from South Korean President Lee Jae Myung after throwing their weight behind the government\u2019s semiconductor push, in an apparent departure from a previously restrained approach to capacity expansion shaped by decades of painful \u200bboom-and-bust cycles in the memory industry.<\/p>\n
Under the plan, the government hopes South Korea can double its memory chip production capacity within five years. Samsung and SK Hynix will also \u200caccelerate construction of \u200cfabs in the existing Yongin semiconductor cluster, shortening the 7-12 year timelines and bringing additional capacity online sooner. Together, the world\u2019s two biggest memory \u200bchipmakers pledged 3.2 quadrillion won ($2.07 trillion) of investment, encompassing a new 800 trillion won chip cluster in the country\u2019s southwest as well as previously announced projects. South Korea is emerging as a major winner from the surge in global AI investment, driven by Samsung Electronics and SK Hynix\u2019s commanding position in high-bandwidth memory (HBM) chips essential to advanced AI processors. Shares of SK Hynix \u2060and Samsung Electronics have gone up 307% and 179%, respectively, so far this year.<\/p>\n","protected":false},"excerpt":{"rendered":"Seoul \u2013 Samsung Electronics and SK Hynix are making one of the biggest bets yet on the artificial…\n","protected":false},"author":2,"featured_media":73900,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[1137,4154,127,276,1136,275,33,915],"class_list":["post-73899","post","type-post","status-publish","format-standard","has-post-thumbnail","category-samsung-electronics","tag-ai","tag-chipmakers","tag-samsung","tag-samsung-electronics","tag-semiconductors","tag-sk-hynix","tag-south-korea","tag-tech"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/73899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=73899"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/73899\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/73900"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=73899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=73899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=73899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}