Samsung and SK have announced domestic investment plans exceeding 4,700 trillion won, raising questions about the disparity with the government's 1,500 trillion won mega-project announcement. Both companies highlighted investments in semiconductors and artificial intelligence (AI) infrastructure, but analysts note that differing scopes and criteria make direct comparisons challenging.
According to Yonhap News on June 29, Samsung unveiled a long-term plan to invest a total of 2,655 trillion won in South Korea from 2026 to 2040. SK also presented a domestic investment roadmap totaling 2,100 trillion won, which includes AI data centers and AI memory production facilities. Combined, the two companies' investments amount to approximately 4,755 trillion won.
In contrast, the government's investment figure stands at about 1,461 trillion won, which includes 800 trillion won for semiconductor production bases in the Honam region, 81 trillion won for HBM packaging in the Chungcheong region, 550 trillion won for AI data centers, and 30 trillion won for next-generation semiconductor research and development. The government rounded this figure to explain a '1,500 trillion investment.'
The primary reason for the discrepancy in figures is the scope of the calculations. The government's announcement focuses on regional investments and new projects, while Samsung and SK's figures encompass metropolitan semiconductor clusters, existing expansion plans, and investments in AI data centers, displays, batteries, and energy across their subsidiaries.
Samsung plans to invest 3,030 trillion won in semiconductor clusters in Pyeongtaek and Yongin, and 625 trillion won in the Honam, Chungcheong, and Yeongnam regions. SK's plans include investments in AI data centers by SK Telecom and the establishment of AI memory production facilities in Yongin, Cheongju, and the Honam region.
Regionally, the combined investment figures from both the government and companies are estimated at 896 trillion won for the Honam region, 392 trillion won for Chungcheong, and 270 trillion won for Yeongnam. The Honam region's investments include four semiconductor fabs, AI data centers, and smart appliances and energy investments, while Chungcheong's figures reflect HBM packaging, displays, batteries, and bio investments. Yeongnam's focus is on physical AI, automotive, shipbuilding, aerospace, and energy sectors.
Industry insiders suggest that the investment announcements are more indicative of long-term production capacity expansion plans rather than immediate construction or expenditure. They believe that the speed of investment realization will depend on factors such as power supply, water resources, permits, and workforce availability.
Particularly, the development of regional semiconductor hubs may face delays if the existing ecosystem of partners is weak, as attracting materials, components, and equipment companies and creating favorable living conditions must occur simultaneously.
The increase in investment amounts is also attributed to rising construction costs for semiconductor factories. Industry estimates indicate that the investment cost for a single semiconductor fab has surged from around 30 trillion won in the past to over 60 trillion won, and now exceeds 100 trillion won. This increase is due to the integration of advanced processes for AI semiconductors, HBM production lines, and packaging facilities.
Samsung Electronics is already making significant investments in the Yongin National Industrial Complex and the Pyeongtaek campus. SK Hynix is also investing in the Yongin semiconductor cluster and the Cheongju advanced packaging fab. The addition of new production bases in the Honam region and plans for new NAND fabs has contributed to the overall increase in the companies' announced investment figures.
An industry representative stated, "The government figures emphasize new projects centered on regional development, while the corporate figures are closer to a long-term domestic investment blueprint. The actual details of where and when production facilities will be established are more important than the numbers themselves."
* This article has been translated by AI.
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