(ATTN: ADDS more info throughout)
SEOUL, June 30 (Yonhap) — Samsung Group and SK Group vowed a combined investment of 896 trillion won (US$578 billion) in the southwest region, in line with the government’s vision of pursuing shared growth in the artificial intelligence (AI) industry, the industry ministry said Tuesday.
In response to the investment pledges, the Ministry of Trade, Industry and Resources pledged to provide the necessary support for their smooth implementation.
The announcement came after the government unveiled what it calls the tripolar mega projects, aimed at advancing technologies across the country and turning South Korea into an industrial powerhouse in the emerging AI era.
In detail, SK Group pledged to invest 470 trillion won in the southwest region to build two semiconductor fabs, as well as a 1-gigawatt AI data center.
As part of the investment, chipmaker SK hynix Inc. will spend 400 trillion won to construct two memory chip fabrication plants in the region.
The broader initiative calls for a total investment of 1,100 trillion won to establish an AI memory manufacturing belt stretching from the company’s existing semiconductor bases in Yongin, just south of Seoul, and Icheon to the country’s southwestern region.
“The AI industry has moved beyond the training phase and entered an era in which AI services are being deployed at scale,” SK hynix Chief Executive Officer (CEO) Kwak Noh-jung said. “Given projections for explosive future demand, the Yongin Semiconductor Cluster alone will not be sufficient to meet future demand, making a new semiconductor cluster necessary.”
SK hynix also plans to build 15 gigawatts of AI data center infrastructure nationwide.
Samsung Group will invest 425 trillion won to build two memory fabs, along with an AI computing center in the region.
The investment plan focuses on three key pillars — building a world-class semiconductor cluster, expanding AI computing infrastructure and fostering future energy industries.
As part of the initiative, Samsung Electronics Co. will invest 400 trillion won to build two new semiconductor fabrication plants in the southwestern city of Gwangju, with the goal of transforming the city into a global semiconductor manufacturing hub.
Amkor Technology, a multinational semiconductor back-end company, also pledged to invest 1 trillion won to expand its packaging facility in the southwestern city of Gwangju.
To support the investment pledges, the industry ministry unveiled the S-WEST Vision, under which the government will provide support in securing sites, water and electricity supplies, institutional backing, and talent.
“The 896 trillion-won investment pledge will rewrite the economic map not only of the southwestern region, but of the entire nation,” the industry ministry said in a release.
“Through the latest investment, we aim to make the southwest region the country’s second semiconductor production hub after the Seoul metropolitan area, as well as a new strategic hub for cutting-edge industries,” it added.
The government also pledged to provide proactive support to ensure the investment pledges do not remain merely plans, but translate into tangible results.
This composite image shows logos of Samsung Electronics Co. and SK hynix Inc. (Yonhap)
colin@yna.co.kr
(END)
