South Korea unveiled a sweeping AI chip investment plan on Monday, tapping Samsung Electronics and SK Hynix to develop a second national semiconductor base in the country’s southwest as Seoul races to defend its lead in memory chips and secure the infrastructure needed for artificial intelligence.
The plan was presented during the government’s “Three Mega Projects” briefing at the Blue House, where officials framed semiconductors, physical AI and AI data centers as the next pillars of national growth.
Korean reports said Samsung and SK Hynix are expected to pour a combined 800 trillion won ($518 billion) into the southwestern chip hub, with four new memory manufacturing facilities planned for the region.
Samsung commits $1.72 trillion to domestic expansion
Samsung pledged 2,655 trillion won ($1.72 trillion) for domestic investment, including 2,030 trillion won ($1.31 trillion) for semiconductor hubs such as Pyeongtaek and Yongin and 625 trillion won ($405 billion) for projects across Honam, Chungcheong and Yeongnam.
Of the regional spending, 425 trillion won ($275 billion) is planned for Honam, including 400 trillion won ($259 billion) earmarked for semiconductors. The plan includes a new chip cluster in Gwangju, along with a digital twin innovation hub and AI data-center cooling facilities.
SK Hynix plans $712 billion investment across key chip regions
SK Hynix also laid out a large-scale investment strategy, saying it will commit 1,100 trillion won ($712 billion) over the mid-to-long term across Yongin, Cheongju and the southwest.
The company said the plan includes 600 trillion won ($389 billion) for Yongin, 100 trillion won ($65 billion) for Cheongju and 400 trillion won ($259 billion) for the southwestern region, with spending to be phased in over time.
Samsung regains crown after SK Hynix rally
The announcement comes after SK Hynix briefly stole the spotlight from Samsung Electronics last week, overtaking the tech giant as South Korea’s most valuable listed company before Samsung later regained its crown.
The move marked a sharp shift in investor appetite as the AI boom lifted demand for advanced memory chips, an area where SK Hynix has gained strong momentum.
On June 22, SK Hynix’s market capitalization reached about 2,091 trillion won ($1.36 trillion), edging past Samsung’s roughly 2,090 trillion won ($1.359 trillion) and ending Samsung’s 26-year run as the most valuable company on South Korea’s benchmark KOSPI index, before Samsung returned to the top spot.
AI memory demand gives SK Hynix an edge
SK Hynix’s rally has been driven by its strength in high-bandwidth memory, a premium class of memory chips used with AI accelerators to move large volumes of data quickly and efficiently.
As demand for AI servers grows, HBM has become one of the semiconductor industry’s most important products, giving SK Hynix a stronger position with customers building next-generation computing systems.
The company has also moved quickly on newer products, saying it shipped samples of its 12-layer HBM4E to major customers. The chip offers a maximum data-processing speed of 16Gbps per pin and improved power efficiency, as AI server demand pushes chipmakers to compete on speed, density and energy use.
Samsung and SK Hynix pare gains after chip investment news
Following news of the AI chip investment plan, shares of Samsung Electronics and SK Hynix both climbed early before losing momentum, with their charts forming red candles as investors appeared to take profits after the initial reaction.
Samsung shares briefly pushed higher after the announcement before pulling back from the session’s upper range. The stock was last trading at 323,000 won, up 1.21%, before forming a red candle as early gains began to fade.
Technically, Samsung remained near the 320,000-won area after a volatile session, while its 14-period RSI stood around 43, keeping momentum below neutral but above oversold territory.
SK Hynix shares were trading at 2,628,000 won, down 1.83%, after hitting an intraday high of 2,678,000 won and a low of 2,614,000 won.
Despite recent profit-taking, SK Hynix remains well above its May levels after a steep AI-driven advance, with its RSI near 46.5 showing momentum has cooled below neutral even as the broader uptrend remains visible on the chart.
