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7h ago

South Korea Unveils Three ‘Mega‑Projects’ as Samsung and SK Hynix Pledge 800 Trillion Won for Southwest Chip Hub

The government says the package will secure memory‑chip supply for the AI era by steering major private and public investment to the southwest.

President Lee Jae Myung presides over a meeting to unveil the government's "three mega projects" aimed at attracting large-scale investment in semiconductors, physical artificial intelligence (AI) and AI data centers at Cheong Wa Dae in Seoul on June 29, 2026. (Pool photo) (Yonhap)
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Overview

  • The government held a televised briefing on Monday, June 29, where it announced three linked projects and said Samsung Electronics and SK Hynix will invest a combined 800 trillion won to build four memory fabs in the southwest.
  • Officials also unveiled a 550 trillion won plan for AI data centres to be built by 2029 with participation from groups including SK, GS and Naver.
  • Ministers promised accelerated permits, land, power and water support but industry experts warned the new hub needs vast electricity, industrial water, skilled workers and mature supplier networks that may take years to develop.
  • Opposition parties and some analysts questioned the choice of the southwest on political and feasibility grounds while markets and investors flagged the risk that heavy multiyear capex could pressure corporate margins and create future overcapacity.
  • Key details remain unresolved, including exact sites, year‑by‑year funding splits, supplier plans and full infrastructure blueprints, making execution the central issue to watch as the projects move from pledge to build.