Korea Announces Major Plans for Chip and AI Data Center Projects

Odaily Planet Daily News The South Korean government announced major project plans in chips, physical AI, and AI data centers on Monday. South Korean President Lee Jae-myung stated that it is necessary to ensure the development of AI elements faster than other countries, and the construction of chip production must be completed as soon as possible. The current factory site is near its limits in terms of water resources and other infrastructure. The southwestern region will invest 5 trillion to 20 trillion Korean won in new projects, and Gwangju and Jeolla may invest 520 trillion Korean won in the projects.

Regarding the detailed planning for factory construction, the South Korean government announced that it plans to build four chip factories in the southwest, with an investment of approximately 800 trillion Korean won; Samsung Electronics and SK Hynix will each build two new factories; investment in the chip sector over the next 15 years is expected to reach at least 30 trillion Korean won, covering areas such as next-generation memory, edge AI, and defense. Investment in the chip packaging cluster in the Chungcheong region is expected to reach 81 trillion Korean won. Investment in building AI data centers is expected to be approximately 550 trillion Korean won.

The South Korean government expects to double DRAM production capacity within five years and anticipates the global memory market will grow fourfold in five years. South Korea also stated that it seeks to distribute the growth dividends to the public. (Jin Shi)