Samsung Announces 2,655 Trillion Won Investment Plan, South Korea’s AI and Semiconductor Strategy Marks Largest-Ever Investment

TradingKey - On June 29, following the official announcement of a new round of semiconductor and artificial intelligence industry development strategies by South Korean President Lee Jae-myung, Samsung Electronics announced a massive long-term investment plan worth up to 2,655 trillion won after-hours, marking the largest investment in the history of South Korea's AI and semiconductor strategy. This investment will focus on key areas such as AI semiconductors, advanced memory chips, AI data centers, advanced packaging, new wafer fabs, displays, and batteries, demonstrating South Korea's attempt to leverage the synergy between corporate capital expenditure and national industrial policy to further consolidate its core position in the global chip supply chain.

According to the strategy announced by the South Korean government, this round of plans will focus on promoting three 'super projects'—semiconductors, AI data centers, and robotics—and building a new semiconductor manufacturing base in the southwestern region of South Korea. Samsung Electronics and SK Hynix will play core roles, while the government will provide supporting infrastructure in power, water resources, transportation, talent cultivation, and regional infrastructure to address challenges such as the long construction cycles of large wafer fabs, high energy consumption, and the difficulty of industrial chain clustering.

Samsung Electronics Daily Stock Chart, Source: TradingView

At today's close, Samsung Electronics' decline narrowed slightly to end 4.86% lower, after plunging nearly 7% intraday; SK Hynix closed down 1.68%, at one point recovering its intraday losses; South Korea's benchmark KOSPI index also saw its losses narrow, closing down a mere 0.2%.