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South Korea Enlists Samsung, SK Hynix, Naver in Multitrillion-Won AI, Chip Investment Plan

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South Korea Enlists Samsung, SK Hynix, Naver in Multitrillion-Won AI, Chip Investment Plan

South Korea has announced plans to build semiconductor facilities and artificial intelligence (AI) data centers, enlisting chipmaker SK Hynix (KRX:000660), Samsung Electronics (KRX:005930) and internet firm Naver (KRX:035420).

As part of the national strategy, a 550 trillion won project will be launched in cooperation with the government, SK, conglomerate GS Group and Naver to build an initial 8.4 gigawatt AI data center capacity by 2029.

The government plans to expand this framework to 15GW by 2035 as part of its Phase 2 project with SK.

SK Group announced its own 1,100 trillion won investment to establish a semiconductor production belt linking the cities of Yongin and Cheongju with the country's southwestern region, while its broader AI infrastructure push is projected to drive an additional 1,000 trillion won in investment.

These initiatives align with SK's ongoing project in Ulsan, where it is building an AI data center in partnership with Amazon Web Services (AWS) that is slated to begin operations in 2027. Another next-generation AI data center is also planned in collaboration with Nvidia.

Meanwhile, Samsung plans to invest 2,655 trillion won to develop advanced semiconductor clusters. These will be located at its Pyeongtaek Campus and the Yongin National Industrial Complex, as well as across the Honam, Chungcheong, and Yeongnam regions.

Within the Honam region, Gwangju is being considered as a prime candidate for one of Samsung's major semiconductor hubs outside of the Seoul metropolitan area as the city offers attractive incentives.

Samsung also plans to build a digital twin-based innovation hub factory for smart home appliances in Gwangju. Additionally, the company will invest 56 trillion won to build high-bandwidth memory fabs in Cheonan and Onyang.

The plans are part of the government's goal for South Korea to become a global leader in physical AI by 2030. The government seeks to establish a comprehensive data management system, considering the next three years as a "golden time" to determine the trajectory of the country in the physical AI industry.

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