Samsung Unveils KRW 2,655 Trillion Investment Plan...Gwangju Selected for Next Semiconductor Plant (Comprehensive)

Jay Y. Lee: "Unimaginable Pace, High Hopes for Gwangju Incentives"

KRW 2,030 Trillion for Pyeongtaek and Yongin Semiconductor Clusters

KRW 625 Trillion Invested in Honam, Chungcheong, and Yeongnam Regions

Samsung has unveiled a massive investment package totaling 2,655 trillion won exclusively for the domestic market to foster future industries in the era of artificial intelligence (AI).

Samsung Electronics Chairman Jae-yong Lee is announcing the investment plan at the National Report Meeting on Three Major Mega Projects, hosted by President Jae-myung Lee, at the Blue House on the 29th. Photo by Yonhap News Agency Blue House Correspondents

On June 29, Samsung Electronics Chairman Jay Y. Lee announced this investment plan at the "Korea’s Great Leap: Three Major Mega Projects National Report Meeting," presided over by President Lee Jae-myung at the Blue House.

Chairman Lee explained the background of the investment, stating, "Due to AI, the technological paradigm is changing at an unimaginable speed, and the market believes that even with aggressive investments, it is still not enough to meet the explosive demand. As a result, the investment schedule for the Yongin National Industrial Complex, following Giheung, Hwaseong, and Pyeongtaek, has been significantly accelerated, and the timeline for preparing a new complex has also been brought forward."

He continued, "Among various regions, Gwangju is being considered as the next candidate site, as it is expected to offer significant incentives for securing and nurturing power, water, skilled workforce, and other infrastructure."

To respond early to the expanding demand for semiconductors, Samsung will invest 2,030 trillion won in nurturing semiconductor clusters in the Seoul metropolitan area, including the Pyeongtaek Campus and Yongin National Industrial Complex, while focusing 425 trillion won (including 400 trillion won for semiconductors) on the Honam region. The company plans to establish a new semiconductor fab in Gwangju, build an innovation hub factory for smart home appliances based on digital twin technology, and set up production facilities for HVAC units dedicated to AI data centers. Samsung stated, "Once the Gwangju semiconductor cluster is established, it will become, alongside the Seoul metropolitan area, one of the two core clusters leading Korea’s semiconductor industry."

In Haenam, South Jeolla Province, a consortium led by Samsung SDS will build the Haenam Solaseado Data Center to secure sovereign AI infrastructure. This facility will serve as the headquarters for the government’s and public services’ AI transformation (AX) and as a hub for supporting industrial physical AI. At the same time, Samsung C&T will make zero-carbon future energy investments in the Honam region, including the construction of solar power plants, nuclear-based hydrogen production facilities, and a green hydrogen demonstration complex. A global state-of-the-art logistics center will also be constructed in Gochang, North Jeolla Province.

A total of 140 trillion won will be invested in the Chungcheong region. Chairman Lee noted, "High bandwidth memory (HBM), which is indispensable for AI model training and inference, requires advanced technology to stack semiconductor chips and demands main fab-level processes. HBM fabs, together with existing semiconductor back-end process fabs, will be the focus of investment in Cheonan, Onyang, and other areas in Chungcheong."

In Asan, Samsung Display will invest 67 trillion won to build production bases for next-generation smartphone lines, including foldables, and ultra-high-resolution micro displays. In Cheonan, Samsung SDI will establish a global mother factory for next-generation batteries, and in Sejong, Samsung Electro-Mechanics will expand advanced package substrate lines for AI server applications, completing the back-end process ecosystem.

President Lee Jae-myung (center), Samsung Electronics Chairman Lee Jae-yong (right), and SK Group Chairman Chey Tae-won are taking a commemorative photo after announcing corporate investments at the 3 Major Mega Projects National Report Meeting held at the Blue House on the 29th. Photo by Yonhap News Agency Blue House Correspondents

In the Yeongnam region, Samsung will invest 60 trillion won to improve the structure of its existing manufacturing sectors by incorporating AX and robot transformation (RX). Chairman Lee stated, "The demand for robots is expected to increase significantly not only in industrial sites such as factories but also in households, restaurants, hospitals, nursing facilities, and various sectors of society. We will focus investments related to robots in Gumi, along with Samsung Group’s internal AI data center." Samsung Electronics will establish a mother factory serving as an innovation hub for global smartphone manufacturing, as well as mass production lines for physical AI and humanoid robots, and Samsung SDS will build an AI data center.

In Busan, Samsung Electro-Mechanics plans to expand investments in multilayer ceramic capacitors (MLCC) for next-generation IT devices and automotive electronics, as well as in advanced package substrate production. At the Ulsan plant, Samsung SDI will increase investments in batteries for next-generation all-solid-state batteries and energy storage systems (BESS). In Geoje, Samsung Heavy Industries plans to establish a hub for building cutting-edge high value-added vessels.

Meanwhile, Samsung’s bio business, selected as a future growth engine, will focus investments in Songdo, Incheon, aiming to solidify its position as the world’s largest bio complex.

Chairman Lee emphasized, "I firmly believe that companies, the government, and local governments working together can create an irreplaceable Korea. With a constant sense of crisis, we will devote ourselves to customer and quality focus, cutting-edge technological innovation, and nurturing outstanding talent, so that we can lead the global competition with an unmatchable 'super gap.'

This content was produced with the assistance of AI translation services.