Samsung Group plans to invest 1,000 trillion won, or US$648 billion [1], in South Korea over the next 10 years [3].

This massive capital injection aims to anchor the next growth cycle for South Korea by leveraging the global surge in artificial intelligence and semiconductor demand [5].

The company is scheduled to formally announce the plan on Monday, June 29, 2024 [4]. A significant portion of the funding is earmarked for infrastructure, with a potential US$194 billion [2] dedicated to the construction of new chip factories in the southwestern region of the country [2].

These investments are designed to strengthen the domestic supply chain, and maintain a competitive edge in the high-stakes AI chip market. By expanding its manufacturing footprint, Samsung seeks to scale production of the advanced semiconductors required to power next-generation AI systems [5].

The scale of the 1,000 trillion won commitment reflects the strategic importance of the semiconductor industry to the South Korean economy [1]. The planned facilities in the southwest will serve as hubs for innovation and production, ensuring the company can meet the rising global demand for high-bandwidth memory and logic chips [2].

“Samsung Group plans to invest 1,000 trillion won, or US$648 billion, in South Korea over the next 10 years.”

This investment signals a strategic pivot to consolidate manufacturing power within South Korea to hedge against global supply chain volatility. By focusing heavily on the southwestern region, Samsung is not only expanding its technical capacity but also attempting to create a concentrated semiconductor ecosystem that can accelerate the development of AI-integrated hardware.