South Korea unveils $900 billion AI and semiconductor investment plan

South Korea announced a multi‑year program worth about $900 billion to expand artificial‑intelligence infrastructure, data‑center capacity and semiconductor production. The plan allocates $518 billion for four new memory‑chip factories in the country’s southwest, $356 billion for AI data‑center construction through 2035, and $52 billion for high‑bandwidth‑memory (HBM) packaging facilities.

Leading Korean firms will finance most of the spending. Samsung disclosed a 2.655 trillion‑won (≈$1.7 billion) commitment that includes more than 425 trillion won for a new semiconductor plant in the Honam region (centered on Gwangju) and an AI data‑center in Haenam. SK Group pledged 2.1 trillion won (≈$1.4 billion), with 1.1 trillion won for expanding chip‑making capacity, 1 trillion won for AI data‑centers, and SK Telecom tasked with supplying 15 GW of computing power for the new facilities. The government expects AI data‑center power to reach 8.4 GW now and 10 GW by mid‑decade, while also promoting robotics on the west coast.

President Jae Myung Lee stressed that the triple‑axis of semiconductors, physical AI and AI data centres will cement South Korea’s industrial leadership by 2026. Officials acknowledge challenges such as securing skilled labour, infrastructure and water supplies, and warn that the massive build‑out could risk oversupply if global demand wanes.