South Korea: Unveils $650 Billion AI Chip Plan
Samsung and SK Hynix commit $650 billion over ten years to fabs, HBM and AI data centers, doubling DRAM output while shares drop on funding risks.
SourceAnalysis
South Korea rolled out a $650 billion AI and semiconductor investment drive led by Samsung and SK Hynix, targeting four new fabrication plants, HBM packaging lines and 18.4 gigawatts of data-center capacity by 2035.
Capital Allocation
The plan earmarks 800 trillion won for fabs, 81 trillion won for advanced packaging and 30 trillion won for next-generation memory, with DRAM production slated to double inside five years. President Lee Jae Myung tied the spending to regional balance while Samsung Chairman Lee Jae-yong noted existing capacity already falls short of demand.
Market Response
Despite the headline figure, Samsung shares fell 5.3 percent and SK Hynix dropped 3.4 percent as investors priced execution risk and near-term financing costs; the Korea Exchange even postponed related options listings amid broader AI valuation concerns across the sector.
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