South Korean President Lee Jae Myung announced on Monday, June 29, 2026 a package of chip and AI projects worth more than $576 billion over several years. He appeared alongside the heads of Samsung Electronics and SK Hynix, the world’s two largest memory chipmakers.
Samsung and SK Hynix will invest a combined 800 trillion won (about $518 billion) with suppliers to build two new fabrication sites each in the southwest, Lee said. Gwangju and South Jeolla province will also invest 5 to 20 trillion won in the projects, and a further 81 trillion won is expected for a chip packaging cluster in the Chungcheong area near Seoul. The companies didn’t give completion timelines.
Lee said existing sites around Yongin and Pyeongtaek have reached their limits, and that the southwest has abundant, underused power. The plan also aims to narrow regional gaps and revive economies outside the Seoul area. Industry experts say spreading investment could ease bottlenecks, but cutting-edge fabs need vast electricity, water, suppliers and skilled labour that may not scale quickly in a new region.
Sources: AP via KRQE, PBS NewsHour.
