Samsung Electronics is set to start operations at the first semiconductor fabrication plant in its Yongin chip cluster by 2029, earlier than initially planned. This move aligns with the government’s efforts to fast-track the development of the Yongin National Industrial Complex, a key national project designated as Samsung’s upcoming semiconductor manufacturing hub. The company aims to kick off operations at the first of six semiconductor plants in the Yongin industrial complex, located just south of Seoul.
The accelerated timeline is expected to enable Samsung to better meet the surging global demand for artificial intelligence chips. Industry sources highlight that starting operations sooner at the initial plant will enhance Samsung’s responsiveness to the rapidly growing market needs for AI chips. Additionally, Samsung recently disclosed its ambitious investment plan, intending to inject 2,030 trillion won (US$1.35 trillion) into its Pyeongtaek and Yongin semiconductor clusters. The plan also includes allocating 400 trillion won for constructing two new chip plants in Gwangju, situated 270 kilometers south of Seoul.
Furthermore, Samsung Group and SK Group have collectively committed to investing 896 trillion won ($578 billion) in the southwest region, aligning with the government’s vision of fostering shared growth in the artificial intelligence (AI) sector. This substantial investment pledge has garnered support from the Ministry of Trade, Industry and Resources, which has assured necessary assistance for the smooth execution of these investment plans. The government’s unveiling of the tripolar mega projects, aimed at propelling technological advancements nationwide and positioning South Korea as a dominant force in the emerging AI era, sets the stage for transformative developments in the industry.
SK Group, as part of its commitment, has outlined a significant investment of 470 trillion won in the southwest region, earmarked for establishing two semiconductor fabs and a 1-gigawatt AI data center. These strategic investments underscore the industry’s collective push towards harnessing AI technologies and solidifying South Korea’s position as a key player in the global AI landscape.
