South Korea's chip industry is poised for a significant boost amidst soaring demand for AI components. Analysts highlight this as a crucial opportunity to outpace rivals like China. Massive investments in new factories and data centers are underway, driven by sky-high profits from advanced memory chip production. This boom, however, also raises questions about sustainability and potential market saturation.

Local media have reported that the planned investments could exceed 1,000 trillion won (US$651.41 billion) over the coming years.

South Korea's President Lee to announce $648 billion AI and semiconductor investment drive led by Samsung and SK Hynix, targeting chips, data centers, and