{"slug": "samsung-sk-hynix-lead-korea-s-w900tr-chip-push-to-turn-ai-demand-into-industrial", "title": "Samsung, SK hynix lead Korea's W900tr chip push to turn AI demand into industrial leap", "summary": "South Korea announced nearly 900 trillion won ($583 billion) in semiconductor investments led by Samsung Electronics and SK hynix, including four new memory fabs in the southwest and HBM packaging hubs, aiming to double DRAM capacity within five years and cement AI-era leadership. The government's \"3S+1F\" strategy fast-tracks infrastructure and permits to accelerate projects, betting on explosive AI-driven memory demand projected to quadruple the global memory market to $800 billion by 2030.", "body_md": "Four new southwest memory fabs, HBM packaging hubs aim to double Korea's DRAM capacity, cement AI-era leadership\n\nSouth Korea is betting nearly 900 trillion won ($583 billion) that the artificial intelligence boom will create enough demand for memory chips to justify building an entirely new semiconductor production belt outside the Seoul metropolitan area.\n\nAt Monday's presidential public briefing on the government's three megaprojects, executives from Samsung Electronics and SK hynix unveiled plans to invest nearly 900 trillion won in new semiconductor facilities, including four memory fabs in the southwest and advanced packaging plants in the North and South Chungcheong provinces.\n\nThe initiative aims to double Korea's DRAM production capacity within five years while linking the country's AI-era industrial strategy with President Lee Jae Myung's regional development agenda.\n\n\"Korea can no longer rely on a single capital-region chip belt,\" Industry Minister Kim Jung-kwan said, calling semiconductors the backbone of the AI era and Korea's \"last chance\" to escape low growth.\n\n\"While existing fab projects in Yongin and Pyeongtaek (in Gyeonggi Province) will be accelerated, new growth bases are needed as semiconductor sites face mounting constraints in power, water and land.\"\n\nTo execute the plan, the government unveiled a \"3S+1F\" strategy centered on speed, stronghold and spearhead, backed by a full-support system mobilizing central and local governments, chipmakers, suppliers and universities.\n\nUnder the speed pillar, Seoul will fast-track infrastructure and permits to shorten construction timelines for existing projects in the capital region. The government aims to bring forward completion of SK hynix's Yongin general industrial complex by 12 years and Samsung Electronics' Yongin national industrial complex by seven years. SK hynix's Yongin cluster is targeted for completion by 2033, while Samsung's complex is expected to be completed around 2040.\n\nThe stronghold pillar calls for Samsung and SK hynix to each build two memory fabs in Gwangju and the southwest region, with combined investment reaching 800 trillion won. The two companies will also invest 81 trillion won in a high-bandwidth memory packaging hub centered on Cheonan and Onyang in South Chungcheong Province.\n\n\"Samsung will work to help the Korean semiconductor industry maintain its technological edge,\" Samsung Electronics Chairman Lee Jae-yong said.\n\nSK Group Chairman Chey Tae-won noted that SK hynix's Yongin cluster took nine years to prepare, underscoring the importance of securing infrastructure and regulatory support for new fabs.\n\n\"Demand visible as of today remains solid. Even if investment continues, it will be difficult to fully resolve the supply shortage,\" Chey said, adding that SK plans to invest about 1,100 trillion won in semiconductor expansion projects, including 400 trillion won in the southwest, while adjusting spending according to market demand.\n\nThe government's bet rests on expectations of explosive AI-driven memory demand. Market tracker Omdia projects the global memory market will quadruple to $800 billion by 2030 from $200 billion in 2025, driven by demand for HBM, AI servers and data-intensive computing systems.\n\nThe new southwest fabs, together with the Yongin cluster now under construction, are intended to significantly expand Korea's production capacity as rivals race to add supply. Micron Technology is seeking additional capacity through its planned acquisition of Taiwan's PSMC and a new fab in Idaho, while China's CXMT is preparing another memory fab in Shanghai.\n\n\"For Korea, the memory race is no longer just a contest between chipmakers, but a national competition over infrastructure, supply chains and speed,\" the Industry Ministry said.\n\nThe government also said the Daegu-North Gyeongsang Province region would be developed into a materials, parts and equipment innovation hub, including for power semiconductors and next-generation chip technologies.\n\nIn addition, Seoul plans to invest more than 30 trillion won over the next 15 years to support the entire semiconductor cycle, from research and design to demonstration and manufacturing, for next-generation memory, on-device AI, on-sensor AI and defense semiconductors.\n\nThe other two megaprojects announced Monday — physical AI and AI data centers — are intended to prepare Korea for the next phase of AI infrastructure.\n\nUnder the physical AI initiative, the government plans to build an ecosystem for robots and autonomous systems, including humanoid robots and AI-powered machines for manufacturing, logistics, defense and healthcare. Seoul aims to transform Korea from one of the world's largest robot users into a leading robot producer, with humanoid robots deployed across 10 key industries by 2028.\n\nThe AI data center initiative focuses on large-scale computing infrastructure, including SK Group's 1-gigawatt project in Ulsan, GS Group's 2.4-gigawatt project in Donghae, Gangwon Province, and Naver's expansion in Sejong. The first phase targets 8.4 gigawatts of capacity.\n\nExperts say the semiconductor ambition will have to be matched by execution.\n\nSK hynix's Yongin cluster broke ground six years after it was announced because of delays involving water supply and land compensation. In semiconductors, even a one- or two-year delay can significantly erode returns if process technologies have already moved on.\n\nWater and talent may prove the biggest hurdles for the southwest expansion. Semiconductor fabs require enormous volumes of water for wafer cleaning and ultrapure water production, while attracting engineers beyond the capital region remains a challenge.\n\nherim@heraldcorp.com", "url": "https://wpnews.pro/news/samsung-sk-hynix-lead-korea-s-w900tr-chip-push-to-turn-ai-demand-into-industrial", "canonical_source": "https://www.koreaherald.com/article/10791812", "published_at": "2026-06-29 06:40:26+00:00", "updated_at": "2026-06-29 07:05:15.144734+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips", "ai-policy", "ai-startups"], "entities": ["Samsung Electronics", "SK hynix", "Lee Jae Myung", "Kim Jung-kwan", "Lee Jae-yong", "Chey Tae-won", "Micron Technology", "CXMT"], "alternates": {"html": "https://wpnews.pro/news/samsung-sk-hynix-lead-korea-s-w900tr-chip-push-to-turn-ai-demand-into-industrial", "markdown": "https://wpnews.pro/news/samsung-sk-hynix-lead-korea-s-w900tr-chip-push-to-turn-ai-demand-into-industrial.md", "text": "https://wpnews.pro/news/samsung-sk-hynix-lead-korea-s-w900tr-chip-push-to-turn-ai-demand-into-industrial.txt", "jsonld": "https://wpnews.pro/news/samsung-sk-hynix-lead-korea-s-w900tr-chip-push-to-turn-ai-demand-into-industrial.jsonld"}}