South Korea to Invest $1.2 Trillion in AI and Chips

South Korea will invest approximately $1.2 trillion, equivalent to two-thirds of its GDP, in semiconductor and AI data center development over the next seven years. This initiative, announced by President Lee Jae-myung, aims to capitalize on the global AI boom and address previous neglect in the region.

Samsung Electronics and SK Hynix will invest 800 trillion won (around $520 billion) to establish a new semiconductor fabrication hub in the southwestern region, which includes Gwangju and Jeolla Province. The government will also invest 650 billion won in AI data centers as part of a 10-year plan.

The project will include four fabrication plants and aims to significantly enhance production capacity. Additionally, the country plans to invest 550 trillion won in AI data centers by 2029, with a total investment exceeding 1,000 trillion won.

This investment is crucial for maintaining market leadership in the semiconductor sector and addressing the demand for AI infrastructure.