[MARKET ANALYSIS] South Korean AI/Chip spending plan, USD 576bln initial AI investment plan. Samsung Electronics (005930 KS) and SK Hynix (000660 KS) heavily involved.

Newsquawk Staff · 29 Jun 2026, 07:15 UTC

South Korea announced a new AI and chip spending package, which includes huge investment from the likes of Samsung Electronics (005930 KS) and SK Hynix (000660 KS); initial USD 576bln AI investment plan.

South Korea

The package is titled, “Semiconductors, physical AI, and AI data centres are the three pillars for a great leap forward”. The total plan includes promoting a semiconductor fab worth KRW 800tln, 81tln in a packaging hub and 550tln to build AI data centres. This is worth c. USD 930bln total.
With this package, the country aims to double DRAM production capacity in five years.
President Lee stated that “we must secure core AI elements faster than any other country”. He added that “the outcomes of the three mega projects we are building will shape South Korea’s next 20 to 30 years”.

Samsung Electronics & SK Hynix

Samsung and SK Hynix will invest a total of KRW 800tln to establish a “second semiconductor base”; it would allow the co. to build a new production facility in Honam.
Samsung plans to invest “more than” KRW 110tln (USD 73bln) on chip capacity expansion and research this year, which would mark a 22% increase from the prior year. The Co. also unveiled plans to invest KRW 1100tln in AI data centres. The breakdown of such plan is: KRW 600tln to expand DRAM production, 100tln to expand NAND production and 400tln to create a new cluster.
Samsung Chairman outlined that they intend to have a HBM fab in Chungcheong, Gwangju as a base for chip production and robots investment within Gumi. Current capacity is not sufficient for demand.
SK Hynix’s Chairman stated that, “with SK Telecom at the center, we will build data centres with a total capacity of 15 gigawatts across regions”. He added that, In phase one, we will split 5 gigawatts of AI data centres into 0.5 to 1 gigawatt units in various areas with power and land to build them as quickly as possible, and in phase two, we will sequentially expand AI data centres to 10 gigawatts.

What our latest note said

US Market Open, 22 Oct, 10:37 UTC · what it led with

Iran's IRGC Navy warned that US efforts to encourage passage could result in strikes on US bases.
Iran's Major General Rezaei said Iran has presented seven new conditions through mediators and will neither reopen the Strait of Hormuz nor resume negotiations until they are met.

Read the whole note Free to read.

Newsquawk Daily

Get the next one free, by email.

What moved overnight, where stocks, bonds, currencies and oil stand, and what’s due today. Written by our analysts.

Both market-open notes, EU and US, every weekday. No account needed. Unsubscribe any time.

If you trade

This headline was on the Newsquawk live feed at 06:55 UTC.

Use the Platform opens our news terminal in your browser, with the live headline feed. It’s news, not a broker.

Use the Platform

Free. No signup, no card.

Case studies

Headlines that moved markets

FX headlines from our feed, and what the market did next.

Fed’s Waller (voter) says more rate hikes are likely needed to tame inflation, but there is flexibility over the pace and hikes do not need to be consecutive.
DXY+0.1%
Japan's GPIF didn't discuss allocation at its September meeting, Bloomberg reports.
USD/JPY+0.1%
Japanese FX Official Mimura says they are closely watching to see if markets take the clear message they are giving at face value. Not satisfied with or reassured by recent JPY action.
USD/JPY−0.5%

See all 183

More on this story

Make Newsquawk a preferred source on GoogleSelect this to see Newsquawk more often in Top Stories when you search Google.

South Korea

Samsung Electronics & SK Hynix

More on this story

Related headlines