Samsung to Unveil $723 Billion, 10-Year Investment Blueprint Across Honam, Chungcheong and Yeongnam

Manufacturing Giant Prepares Record Capital Spending to Match Government’s ‘Mega Projects’ Drive

Honam to Anchor Semiconductors, Chungcheong Displays, Yeongnam AI Manufacturing

Samsung Affiliates to Join Decade-Long Investment Plan Set for Formal Unveiling on June 29

Samsung is preparing a nationwide, long-term investment plan with key affiliates including Samsung Display Co. and Samsung SDI Co., beginning with the development of a semiconductor cluster in the Honam region.

Industry and government officials estimate the project will total more than 1,000 trillion won ($723 billion) over the next 10 years.

According to industry and government officials on June 28, Samsung plans to present the blueprint on June 29 at the “National Briefing on South Korea’s Three Major Leap-Forward Mega Projects,” an event to be presided over by President Lee Jae-myung.

The plan is intended to align with the government’s regional balanced-development agenda, including its “five poles and three special zones” framework — five ultra-wide regional blocs and three special self-governing cities and provinces — as well as three mega projects focused on semiconductors, physical AI and AI data centers.

Under the plan, Honam would host a large semiconductor cluster covering both front-end and back-end chip manufacturing.

Industry officials say as many as five semiconductor plants could be built there, with construction costs estimated at about 60 trillion won ($43.4 billion) for each facility.

On construction costs alone, that would amount to 300 trillion won ($217 billion). The overall economic impact could exceed that level once supplier ecosystems and power and water infrastructure are taken into account.

In the Chungcheong region, the focus would be on upgrading the industrial ecosystem for advanced materials and components.

Samsung Display is expected to invest about 100 trillion won ($72.3 billion) over 10 years in next-generation displays, using its Asan and Cheonan campuses as production hubs.

Samsung SDI’s Cheonan site is expected to expand battery production in line with growth in next-generation mobility and physical AI. Samsung Electro-Mechanics Co.’s Sejong site is also expected to increase capacity for high-value semiconductor substrates.

There is also a possibility that Samsung Electronics Co. Chairman Jay Y. Lee will visit the Asan campus on July 2 and present the investment vision himself.

In the Yeongnam region, the core of the plan is AI-based manufacturing upgrades.

Samsung Electronics plans to strengthen AI-driven manufacturing competitiveness in mobile and home appliance operations at its Gumi complex in North Gyeongsang Province.

Samsung Electro-Mechanics’ Busan site aims to expand production of multilayer ceramic capacitors, or MLCCs, and semiconductor substrates. Samsung SDI’s Ulsan site is expected to expand production facilities to meet rising demand for energy storage systems, or ESS, as AI infrastructure spreads.

In Incheon, investment in biotechnology centered on Samsung Biologics Co. is expected to continue.

Samsung’s announcement of the medium- to long-term plan could also speed nationwide investment talks between the government and other major conglomerates tied to the three designated mega projects, including Hyundai Motor Group and LG Group.

Hyundai Motor Group is already investing in Saemangeum in North Jeolla Province to develop it into a hub for future mobility and physical AI. LG Group has identified physical AI and AI infrastructure expansion as new growth drivers and is pursuing cooperation with Nvidia Corp.

Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com