South Korea's chip industry will witness record investment in the context of soaring demand for components to power artificial intelligence data centers.
The 800 trillion won (518 billion USD) project will include 4 chip manufacturing plants in the southwest of the country.
First, we will develop the southwest region into a second semiconductor production center. We will build 4 memory factories through business investments with a total value of 800,000 billion won" - AFP quoted Minister of Industry Kim Jung-kwan at the Presidential Office.
The announcement was announced with the participation of representatives of Samsung, SK hynix and other electronics companies. This announcement is in line with President Lee Jae Myung's agenda on industrial development in areas outside Seoul.
This new investment is the largest investment ever since Samsung Group and Hyundai Motor announced investment plans of 450,000 billion won (approximately 293 billion USD) and 125,000 billion won (approximately 81 billion USD) respectively in South Korea in 5 years in November last year.
AI data centers play the role of the heart supplying energy for artificial intelligence and global investment in this field is expected to reach about 5,500 billion USD by 2030" - according to a statement from the South Korean Government.
The statement emphasized that South Korea is supporting to ensure that large-scale investment in AI infrastructure will lead to the development of the domestic AI data center industry and enhance the competitiveness of this ecosystem.
