South Korea has announced a huge plan to become a world leader in Semiconductor chips and artificial intelligence. On Monday, President Lee Jae Myung said the country will invest more than $576 billion to strengthen these industries and create jobs across different regions. The plan will be led by Samsung Electronics and SK Hynix, the world’s biggest memory chip companies. President Lee said the country will focus on three main areas: Semiconductor chips, AI technology and data centres. He also mentioned that South Korea must develop AI faster than other countries to stay competitive.Â
Samsung and SK Hynix, along with their partner companies, will spend 800 trillion won (about $518 billion) to build two new chip factories each in the southwestern part of South Korea. This move will help make more computer chips and meet future demand. Separately, as part of its broader financial strategy, Samsung Electronics plans a $59 billion share buyback.
The government also said that Gwangju city and South Jeolla province will invest 5 to 20 trillion won in these projects. Another 81 trillion won will be spent on a chip packaging centre in the Chungcheong region near Seoul. According to Industry Minister Kim Jung-kwan, South Korea has to ramp up its manufacturing of chips fast since there is a high demand for semiconductors. This is because the current semiconductor hub in Yongin and Pyeongtaek are almost reaching their capacity.
President Lee said the southwestern region was chosen because it has ample electricity, making it a good place for large chip factories. The government hopes this plan will boost the economy, reduce the gap between Seoul and other regions, and help South Korea remain a global leader in advanced technology.
