South Korea Moves to Accelerate $576 Billion Chip and AI Investment Plan

South Korea holds a pivotal position in the global memory-chip and high-bandwidth memory (HBM) supply chains, with Samsung Electronics and SK hynix controlling most production capacity. Amid growing US-China competition and rising demand for AI computing power, the government has designated semiconductors, physical AI and AI data centers as three strategic pillars. Investments in manufacturing, robotics and computing infrastructure are intended to reinforce the country’s export and technology advantages.

On June 29, 2026, South Korean President Lee Jae Myung unveiled the “Tripolar Super Plan” in Seoul, coordinating 1,350 trillion won, or about $880 billion, of investment by Samsung Electronics, SK Group and other companies over the next 10 years. Of that amount, Samsung and SK hynix will invest 800 trillion won in new wafer fabrication plants. The government has also approved a five-year technology roadmap that calls for more than 200 trillion won in research and development spending by 2030.

The expansion of AI data centers is driving demand for HBM, DRAM and advanced packaging, prompting Samsung Group and SK Group to increase production capacity in South Korea. The investments also address US-China technology competition and supply-chain risks across the Taiwan Strait. Citigroup expects the push to generate orders and spur technological upgrades for South Korea’s semiconductor equipment industry.

On June 29, 2026, Samsung and SK unveiled overall investment plans of up to 2,000 trillion won, or about $1.3 trillion, over the next 10 years, including new wafer fabrication and packaging facilities in South Korea. SK hynix separately plans to invest 1,100 trillion won and has brought forward the targeted completion of its fourth fabrication plant in Yongin to 2033.

South Korea is a global memory-chip powerhouse, with Samsung Electronics and SK hynix leading supplies of DRAM and high-bandwidth memory. Surging demand from AI data centers has made advanced memory central to national competitiveness. The investment is equivalent to about 17% of the global cryptocurrency market’s total value, underscoring the vast amount of capital flowing into AI infrastructure.

On June 29, 2026, the South Korean government unveiled a national semiconductor ecosystem plan under which Samsung Electronics and SK hynix will invest a combined 800 trillion won, or about $518 billion. The companies will build four fabrication plants in the country’s southwest and double DRAM output within five years. The Chungcheong region will focus on packaging, while other regions will expand capacity for components, materials and data centers.

The South Korean government is pursuing its K-Automotive and Edge AI Semiconductor Technology Development project, targeting low-latency, low-power computing for vehicles, the Internet of Things and robots. The project aims to complete customized AI chips and software by 2030, reducing reliance on overseas technology and expanding South Korea’s semiconductor footprint.

The government recently formally approved the R&D project with a total budget of 800.2 billion won for chip design, software and application validation. Because the approved funding was cut from the amount originally planned, the industry is concerned about whether the technology can enter mass production and commercial use by 2030. Corporate participation and market adoption will be key areas to watch.

South Korea regards AI as central to national competitiveness and industrial upgrading. The Ministry of Economy and Finance and the Ministry of Science and ICT are supporting domestic models, AI semiconductors and computing infrastructure. With companies such as Nvidia dominating the global supply chain, the government aims to seize a critical window over the next one to two years, reduce reliance on overseas technology and make South Korea one of the world’s top three AI powers.

On May 27, 2026, Vice Minister of Economy and Finance Cho Yong-beom said during a meeting with startups including FuriosaAI in Seoul that the government would invest 9.9 trillion won, or about $6.6 billion, this year to build AI infrastructure including GPUs and restructure fiscal spending. The Ministry of Science and ICT will also deploy domestically developed AI in research and development budget reviews, local administration and care services.

South Korea is pursuing its “K-Nvidia” initiative to reduce its reliance on overseas GPU suppliers for AI computing. A public-private National Growth Fund managed by the Korea Development Bank plans to raise a total of 150 trillion won ($102 billion), with a focus on domestic NPU companies capable of mass production, strengthening chip supply autonomy and international customers’ confidence.

On March 17, 2026, FuriosaAI and Rebellions became the first investment candidates in the semiconductor sector. FuriosaAI began mass production of its 5-nanometer Renegade chip in January, while Rebellions started mass-producing its 4-nanometer RebelQuad in February. The government met with three other companies the same day, but the final list of beneficiaries and individual investment amounts remain subject to review by the investment committee and the fund management committee.