Samsung Electronics and SK Hynix announced a joint 800 trillion won ($518 billion) investment to build a new semiconductor manufacturing hub. The project involves constructing four new fabrication plants in South Korea’s southwest region. Each company will build two facilities. South Korean President Lee Jae Myung participated in the announcement.
The investment addresses explosive demand for high-bandwidth memory (HBM) chips essential for artificial intelligence infrastructure. Samsung and SK Hynix currently lead the global memory market as the top two producers. This expansion aims to solidify their dominance and meet future AI-driven requirements. The move creates a significant competitive challenge for U.S.-based rival Micron Technology, the world's third-largest memory manufacturer.