Samsung and SK Hynix to Announce $648 Billion Semiconductor Investment Plan

TLDR

• Samsung Group plans to unveil a 1,000 trillion won ($648 billion) decade-long investment plan on Monday
• The plan includes AI data centers, batteries, displays, and a possible $194 billion chip factory cluster in southwest South Korea
• SK Hynix recently overtook Samsung as South Korea’s most valuable listed company, with a market cap of ~$1.35 trillion
• New chip facilities are targeted for completion by 2034–2035, accelerated from an earlier 2044 timeline
• South Korea’s president is pushing to spread semiconductor investment beyond Seoul to drive regional development

Samsung Group is set to announce one of the largest corporate investment plans in history on Monday. The South Korean conglomerate will pledge 1,000 trillion won — roughly $648 billion — over the next decade, according to a report by Maeil Business Newspaper.

The announcement will take place at a meeting with President Lee Jae Myung at the presidential office. Top executives from Samsung Electronics and rival chipmaker SK Hynix are both expected to attend.

The investment covers a wide range of sectors, including AI data centers, batteries, and display manufacturing. A key part of the plan may include spending around 300 trillion won ($194 billion) to build chip factories in South Korea’s southwest region.

South Korea Pushes Semiconductor Growth Beyond Seoul

For years, South Korea’s chip production has been concentrated in and around Seoul. President Lee has made regional development a core policy goal, and the location of new semiconductor facilities has become a political issue.

Ahead of South Korea’s June 3 local elections, regions across the country competed to attract Samsung and SK Hynix investment. Proposals ranged from a 500 trillion won chip complex in the southwest to new clusters in Gyeonggi, Chungcheong, and Gangwon provinces.

A presidential adviser confirmed this week that the government is in talks with both chipmakers about accelerating large-scale semiconductor projects. Facilities originally planned for the 2040s may now be moved up to the mid-2030s.

The reason for the acceleration is demand. South Korean officials have described AI-driven need for memory chips as “exponential and explosive,” with existing infrastructure in the capital region already running out of space, power, and water.

SK Hynix Surpasses Samsung in Market Value

SK Hynix recently overtook Samsung Electronics as South Korea’s most valuable listed company. Its market capitalization now stands at approximately $1.35 trillion.

The shift reflects SK Hynix’s dominance in high-bandwidth memory, or HBM — the type of chip used in AI computing. Nvidia and other AI chip designers depend heavily on HBM supply, and SK Hynix currently leads that market.

SK Hynix had already announced a $15 billion investment in new semiconductor facilities back in February 2026. The new combined plan with Samsung raises the total commitment considerably.

Earlier versions of South Korea’s semiconductor investment strategy had estimated total long-term spending at around $471 billion through 2047. The updated $648 billion figure shows how quickly AI demand projections have grown.

Samsung Group is South Korea’s largest conglomerate. Beyond Samsung Electronics, it includes battery maker Samsung SDI and IT services firm Samsung SDS.

President Lee’s approval rating has slipped to 51%, its lowest since he took office in June last year, according to Gallup Korea. The Monday announcement is widely seen as a centerpiece of his economic agenda.

The new chip facilities are targeted for completion between 2034 and 2035.

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