Samsung Unveils $1.92 Trillion South Korea Investment Plan, Including New Gwangju Chip Fab

Samsung will invest a total of 2,655 trillion won ($1.92 trillion) in South Korea to secure future growth engines, with the bulk of the spending earmarked for semiconductors and other advanced industries.

The group plans to spend 2,030 trillion won ($1.47 trillion) on semiconductor clusters in Pyeongtaek and Yongin by 2030, and another 625 trillion won ($452.9 billion) across the Honam, Chungcheong and Yeongnam regions on AI semiconductors, robots, batteries, and IT parts and materials. The investment is aimed at expanding domestic production bases and strengthening regional advanced-industry infrastructure as chip demand accelerates in the AI era.

Samsung announced the domestic investment plan on June 29. The spending is intended to get ahead of rapid technological shifts tied to AI and bolster long-term competitiveness. The company said the investment would help turn South Korea into a global cluster for cutting-edge industries.

Semiconductors account for the largest share of the plan. Samsung will invest 2,030 trillion won ($1.47 trillion) to foster semiconductor clusters including its Pyeongtaek campus and the Yongin national industrial complex. Separately, it plans to invest 425 trillion won ($307.9 billion) in the Honam region, including 400 trillion won ($289.8 billion) for semiconductors alone.

A new semiconductor fab in Gwangju is the centerpiece of the Honam investment. Samsung Electronics plans to build the fab and develop a digital twin-based innovation hub in the city. The company said the move reflects a need to accelerate development of its next chip cluster after Giheung and Hwaseong, Pyeongtaek and Yongin.

Samsung is considering Gwangju as a candidate site among several regions. It cited the potential for support on electricity, water, workforce recruitment and training, and residential conditions. The company expects a Gwangju semiconductor cluster to become one of two central pillars of South Korea's chip industry alongside the Seoul metropolitan area.

Gwangju will also host facilities related to smart appliances and AI data centers. Samsung Electronics plans to build a digital twin-based innovation hub factory for smart home appliances at its Gwangju complex. It also plans to add production facilities for heat pumps and air-conditioning systems used in AI data centers.

In Haenam, Samsung plans to establish sovereign AI infrastructure. A consortium led by Samsung SDS plans to build the Solar City AI Data Center there. Samsung described sovereign AI as an independent AI ecosystem developed and controlled by a country without relying on overseas big tech companies.

The Solar City AI Data Center will serve as a headquarters for government AX support. It will back AI transformation in finance, defense and public services, while also serving as a base for strengthening research and development capabilities at universities, research institutes and companies. The facility is also intended to support industrial physical AI and foster a related industrial ecosystem.

Samsung is also pursuing carbon-free energy investment in the Honam region. Samsung C&T plans to invest in solar power facilities, nuclear-based hydrogen production plants and a demonstration complex for green hydrogen research and development. In Gochang, North Jeolla, Samsung Electronics plans to build a state-of-the-art global logistics center.

Samsung will invest 140 trillion won ($101.4 billion) in the Chungcheong region. The group plans to expand spending there to upgrade advanced industries including HBM fabs, next-generation displays, batteries and package substrates for AI servers. Samsung Electronics will build an advanced HBM fab in Cheonan and Onyang, with investment totaling 56 trillion won ($40.6 billion). The project is aimed at strengthening regional production capacity as demand for HBM rises with the expansion of the AI industry.

In Asan, Samsung Display will spend 67 trillion won ($48.5 billion) to build a production base for next-generation smartphone displays including foldable panels and ultra-high-resolution microdisplays. Microdisplays are ultra-small, high-resolution displays measuring less than 1 inch. They are seen as key components for XR devices including AR, VR and MR products expected to grow in the AI era.

In Cheonan, Samsung SDI will establish a global mother factory for next-generation batteries. In Sejong, Samsung Electro-Mechanics will build a cutting-edge package substrate line for AI servers as demand rises for high-performance substrates.

Samsung's investment in the Yeongnam region will total 60 trillion won ($43.4 billion). The company plans to strengthen its role as a national industrial engine by combining AX and RX, or robot transformation, with its core manufacturing businesses.

In Gumi, Samsung Electronics will build a mother factory to serve as a global manufacturing innovation hub for smartphones. The site will also house mass-production lines for physical AI and humanoid robots. Samsung SDS plans to build an AI data center in Gumi.

In Busan, Samsung Electro-Mechanics will expand investment tied to next-generation IT devices, a leading production base for multilayer ceramic capacitors for automotive electronics, and cutting-edge package substrate lines. In Ulsan, Samsung SDI will increase investment in batteries for next-generation solid-state batteries and battery energy storage systems. In Geoje, Samsung Heavy Industries will establish a construction base for cutting-edge, high-value ships.

Kim Dae-young, Hankyung.com reporter, kdy@hankyung.com