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Samsung and SK Hynix plan $590bn chipmaking expansion

Companies to invest alongside South Korean government in factories to meet surging demand for memory chips

Samsung Electronics and SK Hynix, the world’s largest makers of memory chips, and the South Korean government plan to invest $590bn in a vast manufacturing expansion as the AI boom exacerbates chip shortages.

The companies and government will invest a combined Won911tn ($590bn) to build chipmaking facilities in under-developed parts of South Korea as part of President Lee Jae Myung’s plan to promote more balanced regional economic development.

The investment pledges are part of the “Three Mega Projects for the Great Leap Forward” initiative announced on Monday and aimed at developing the country’s capabilities in semiconductors, AI data centres and robotics.

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