SK Hynix and Samsung Electronics will invest 800 trillion won ($518 billion) to build a semiconductor manufacturing hub in southwest South Korea. The project aims to meet surging global chip demand driven by artificial intelligence growth.
The South Korean government is backing the initiative to secure national dominance in the AI sector. Each company plans to construct two massive fabrication plants to expand capacity beyond existing sites.
This program ranks among the largest industrial capital investments in the history of the semiconductor industry. SK Hynix shares fell 3.1% following the announcement. Investors expressed concern regarding the scale of the long-term capital expenditure.