South Korea said on June 29 that Samsung Electronics and SK hynix plan to each build two chip fabrication sites in the country’s southwest as part of a semiconductor project the government valued at 800 trillion won (US$517.9 billion).

The project aims to strengthen a chip production ecosystem focused on AI.

Available public details suggest the 800 trillion won (US$520 billion) figure likely expands on, rather than replaces, South Korea’s earlier chip-cluster strategy.

The earlier plan already targeted 622 trillion won (US$404 billion) of private investment through 2047 around Yongin and other Gyeonggi sites.

In the southwestern Honam region, candidate sites under review include industrial areas in Gwangju and Jangseong.

Samsung Electronics and SK hynix said no final decisions had been made, and the planned chip output had not been fixed.

Earlier discussions focused on packaging and back-end semiconductor operations before expanding to possible front-end fabrication plants.

More clearly defined AI memory expansion plans remain tied to Yongin and Pyeongtaek.

The project also sits alongside broader state support for AI chips, including research and development and financing programs.

Semiconductor facility investments can qualify for 15% to 20% tax credits under South Korea’s national strategic technology regime.

🔗 Source: Reuters

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