South Korea Unveils $518 Billion Chip Plan, Samsung and SK Hynix to Invest

By EC Assets · Published 29 June 2026

South Korea has unveiled a significant investment plan targeting the artificial intelligence and semiconductor sectors. The nation launched a $518 billion chip plan. Samsung Electronics and SK Hynix, major South Korean tech companies, saw their shares fall after the announcement. Samsung and SK Hynix plan to invest a combined approximate 800 trillion won, which is about $518 billion. This investment is aimed at building four new chip fabrication plants. The plan also intends to strengthen South Korea's position as a global AI powerhouse. President Lee Jae Myung presented these plans as crucial for maintaining South Korea's technological leadership. The combined investment from Samsung and SK Hynix comes as part of a larger government initiative. South Korea announced $650 billion in AI and chip spending. Some reports also indicated an even broader South Korean investment plan of $880 billion in chip and AI. The total investment commitment by Samsung Electronics and SK Hynix could exceed 1,000 trillion won. This new investment from Samsung and SK Hynix is reportedly the largest since earlier plans by Samsung Group and Hyundai Motor Group. Those prior plans involved investments of 450 trillion won and 125 trillion won, respectively. South Korean stocks rebounded after initial losses as Samsung and SK Hynix confirmed their investment during a government briefing. This substantial investment could help solidify South Korea's standing in the advanced technology landscape. Market participants will likely monitor the execution of these projects. The impact on global supply chains and competitive dynamics in the semiconductor industry will also be a key area of focus. This article is intended for informational purposes only. It does not constitute investment advice.