Samsung Electronics Announces $650 Billion AI Semiconductor Investment Plan

en.Wedoany.com Reported - Samsung Electronics is expected to announce this week in South Korea a 1,000 trillion won (approximately 2.7 trillion ringgit) investment plan aimed at expanding its business footprint in AI-related semiconductors and infrastructure.

This 10-year package, valued at approximately $650 billion (about 2.7 trillion ringgit), is expected to be jointly announced by Samsung and the South Korean government. It would be the largest investment commitment in the history of South Korean corporations.

The plan is anticipated to be unveiled on Monday during a briefing on "National Mega Projects" chaired by South Korean President Lee Jae Myung, aligning with his policy direction to support development outside the capital region. SK hynix is also expected to announce major spending plans at the same event. Samsung and SK hynix are the world's leading producers of advanced memory chips, which are widely used in data centers for AI systems.

Samsung's investment plan includes approximately 300 trillion won (about 798.4 billion ringgit) for building a new semiconductor complex in southwestern South Korea, a region that has long received less tech investment than the capital area. About 60 trillion won (approximately 159.7 billion ringgit) is expected to be allocated to six chip manufacturing plants in Yongin, southern South Korea. Over 350 trillion won (about 931.5 billion ringgit) may be used for AI infrastructure, including data centers. This investment comes as Samsung benefits from strong AI-driven demand, with continued growth in demand for memory semiconductors, foundry capacity, and other technology solutions.

Samsung Electronics posted an operating profit of 43.6 trillion won (about 116 billion ringgit) last year, up 33% year-on-year. The company is expected to achieve even stronger earnings growth in the coming years. Samsung Chairman Lee Jae-yong met with President Lee Jae Myung in Seoul this week to discuss semiconductor investments. Reports indicate that the president also met with SK Group Chairman Chey Tae-won last week. Presidential Chief of Staff for Policy Kim Yong-beom stated that discussions on the Yongin semiconductor project have entered their final stages.

As demand for AI chips, data centers, and advanced memory products continues to grow, this investment plan will enhance Samsung's long-term semiconductor production capacity.

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