South Korea unveiled a massive long-term AI and semiconductor expansion plan, with investments expected to exceed 1,000 trillion won by 2035, covering AI data centres, chip manufacturing and related infrastructure.
The government plans to invest 5-20 trillion won in the southwest initially, while projects in Gwangju and Jeolla could eventually total 520 trillion won. It also aims to build four new semiconductor fabs in the region, with a combined investment of around 800 trillion won. Samsung Electronics and SK Hynix are expected to build two fabs each.
Over the next 15 years, South Korea expects at least 30 trillion won of investment in next-generation memory, edge AI and defence chips. A semiconductor advanced packaging cluster in the Chungcheong region is projected to attract around 81 trillion won.
The government also estimates AI data-centre construction will require around 550 trillion won. It aims to double DRAM production capacity within five years, while forecasting the global memory-chip market could grow fourfold during the same period.
Regionally, the southwest will focus on expanding memory-chip production, the central region on advanced packaging, and the southeast on semiconductor materials, components, equipment and next-generation power chips.
Following the announcement, KOSPI erased earlier losses of more than 3% and turned positive during intraday trading.
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