South Korean tech giants to build a $518B chipmaking hub to serve soaring AI demand

Source Domain: abcnews.com

South Korean tech giants Samsung Electronics and SK Hynix plan to invest a combined 800 trillion won ($518 billion) to build a new computer chipmaking hub in the southwest region of South Korea.
The location aims to capitalize on the surging AI-driven demand for memory chips.
The initiative aligns with the government’s strategy to expand economic investment beyond the greater Seoul metropolitan area, promoting economic development in areas like the southwest where industrial hubs are lacking.
Each company will construct two new fabrication plants in the southwest region, expanding their existing manufacturing bases south of Seoul.
The chipmakers’ expansion is driven by the anticipated long-term increase in AI-driven demand and the need to manage the potential capacity constraints in their current facilities in Gyeonggi Province.
The government envisions establishing a nationwide semiconductor ecosystem where regions such as the southeast, central Chungcheong, and data centers across the country contribute to different segments of semiconductor production.