South Korea Announces Sweeping Public‑Private Push to Build Southwest Chip and AI Hub

Overview

• President Lee Jae Myung unveiled the program on Monday, June 29, calling it three megaprojects focused on semiconductors, physical AI and AI data centers to speed the country's lead in artificial intelligence.
• Samsung and SK Hynix committed to a combined 800 trillion won with suppliers to build two new chip fabs each in the southwest region and other firms pledged roughly 550 trillion won toward AI data centers through 2029.
• Samsung named Gwangju as its chosen site while SK Hynix said it still needs time to pick a location and verify local power, water and transport before finalizing plans.
• Ministers set capacity goals including doubling DRAM output within about five years and an initial 8.4 gigawatts of data‑center expansion with plans to reach roughly 18.4 GW by 2035, but the government has not published detailed funding, timelines or infrastructure measures.
• Opposition politicians accused the project of political motives and industry experts warned that reliable electricity, large water supplies, dense supplier networks and skilled workers will be hard to build quickly, so success hinges on concrete infrastructure delivery and site confirmations.