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Mon, 29 Jun 2026

Mon, 29 Jun 2026 South Korea unveils $880bn chip and AI investment plan

It comes as regional rivals like Taiwan, China and Japan are investing heavily in chip factories and other technology.
South Korea's President Lee Jae-myung has unveiled an ambitious plan to invest at least $880 billion in chip manufacturing and artificial intelligence (AI) capabilities over the next few years. This move is part of the country's Three Mega Projects, which aim to develop new chip production hubs, data centers, and robotics technology in areas outside of Seoul. Lee believes that securing the core elements of AI will be crucial for Korea's economic growth and competitiveness, particularly as regional rivals like Taiwan, China, and Japan invest heavily in similar technologies. The president has announced plans to build additional AI infrastructure hubs beyond Seoul, where most advanced factories are currently concentrated. He also stated that addressing the decline of rural areas due to industry concentration in Seoul is a matter of "survival" for the country, and that the project will help break cycles of discrimination and marginalization. Major chipmakers Samsung and SK Hynix have been among the beneficiaries of the surge in AI spending, with SK Hynix's stock market valuation reaching over $1 trillion. However, some investors have raised concerns about the massive investments being poured into AI, leading to recent declines in share prices.