South Korea is sitting down with its two semiconductor heavyweights to map out the next wave of chip manufacturing investments. The government is in active discussions with Samsung Electronics and SK Hynix about building new facilities to meet what officials describe as an unprecedented surge in demand for AI-driven chips.
SK Hynix recently overtook Samsung to become South Korea’s most valuable listed company, riding a wave of record profits fueled by its dominance in High Bandwidth Memory chips.
The construction clock is ticking faster
Presidential policy adviser Kim Yong-beom put the urgency in stark terms. He noted that surging AI chip demand could require accelerating the construction timeline for new semiconductor facilities by more than 10 years, with targets now set for completion around 2034-2035.
An announcement regarding a new chip cluster is expected shortly, according to the discussions. The plan involves establishing a second massive semiconductor production site, a direct response to the explosive growth in AI technology and data processing requirements.
