Samsung plans $648B decade-long investment, report says

Key Takeaways

• Samsung Group reportedly plans to invest $648 billion over 10 years in AI, chips, batteries, and displays
• Up to $194 billion may go toward chip factories in South Korea's southwest region
• The investment aims to decentralize AI infrastructure beyond Seoul and address regional development pressure

Samsung Group is preparing a $648 billion investment pledge over the next decade, according to a report from South Korea's Maeil Business Newspaper. The conglomerate will reportedly announce the plan Monday at a meeting with President Lee Jae Myung, targeting AI data centers, chip factories, batteries, and displays as South Korea scrambles to keep pace with surging AI demand.

The reported figure, 1,000 trillion won, would make this one of the largest corporate investment commitments in history. A significant chunk, roughly 300 trillion won ($194 billion), may flow specifically to chip factories in South Korea's southwest, a region that has long pushed for a share of the country's semiconductor boom.

Why is Samsung shifting chip investment outside Seoul?

The concentration of Samsung and SK Hynix production facilities around Seoul has created infrastructure bottlenecks. Presidential policy adviser Kim Yong-beom said Wednesday that AI-driven memory demand is growing faster than expected. The capital region is running out of room, power, and water for further expansion. Projects originally scheduled for the 2040s may need to move up to the mid-2030s.

This is not just an operational problem. It is political. President Lee has made balanced regional development a priority, and the June 3 local elections turned semiconductor investment into a flashpoint. Candidates across multiple regions pitched their areas as the next chip hub, with proposals ranging from a 500 trillion won complex in the southwest to expanded clusters in Gyeonggi, Chungcheong, and Gangwon.

What will the investment cover?

The Maeil Business Newspaper report did not provide a detailed breakdown, but it named AI data centers, chip factories, batteries, and displays as key areas. Samsung Group includes Samsung Electronics, the world's largest memory chip producer, as well as battery maker Samsung SDI and IT services firm Samsung SDS. Each affiliate likely has its own slice of the trillion-won pie.

The presidential office said it will announce "three mega-projects" on Monday to drive national growth, though it has not confirmed the specifics. Top executives from Samsung Electronics and rival SK Hynix will attend the meeting, with both companies laying out plans that target regions beyond Seoul.

The political backdrop

President Lee's approval rating has dropped to 51%, the lowest since his June 2024 inauguration, according to Gallup Korea. His government has made AI a core economic policy priority, and delivering major industrial investment to underserved regions could help reverse the slide.

Lee met separately with the heads of Samsung and SK earlier this week. The timing suggests the Monday announcement has been carefully staged as a joint government-corporate effort to demonstrate momentum on AI and regional development.

How does this compare to global chip investments?

The scale is enormous. For context, the U.S. CHIPS Act allocated $52 billion in subsidies and incentives for domestic semiconductor manufacturing. TSMC's ongoing Arizona expansion is projected at roughly $65 billion across three fabs. Samsung's reported $648 billion figure dwarfs both, though it spans a full decade and covers multiple sectors beyond chips.

Samsung and SK Hynix declined to comment on the report. Neither company confirmed the investment figures or timeline.

Frequently Asked Questions

How much is Samsung planning to invest?

According to the Maeil Business Newspaper report, Samsung Group is preparing to invest 1,000 trillion won ($648 billion) over 10 years across AI data centers, chip factories, batteries, and displays.

Where will Samsung build new chip factories?

The report indicates up to 300 trillion won ($194 billion) may go toward chip factories in South Korea's southwest region, away from the congested Seoul area.

When will Samsung announce the investment?

The announcement is expected Monday at a meeting with President Lee Jae Myung at the presidential office.

Is SK Hynix also making investment announcements?

Yes. SK Hynix executives will attend the same Monday meeting and are expected to lay out their own investment plans targeting regions beyond Seoul.

Why is South Korea pushing semiconductor investment outside Seoul?

The capital region is running out of power, water, and space for further chip factory expansion. The government also faces political pressure to spread economic development more evenly across the country.

Source: Tech-Economic Times / ET