SK Unveils $1.5 Trillion Bet on AI, Chips to Reshape South Korea’s Growth Map

SK Group plans to build artificial intelligence infrastructure across South Korea, rolling out AI data centers nationwide in stages and creating a semiconductor manufacturing belt linking Yongin, Cheongju and the country’s southwest. The goal is to establish the core foundations of the AI industry at home.

Chairman Chey Tae-won presented the mid- to long-term investment strategy on June 29 at a national briefing on South Korea’s three mega-projects at the Yeongbingwan state guest house in the presidential office complex. SK outlined a plan to expand core AI infrastructure in the country, including AI data centers and chip production bases, with the aim of turning South Korea into a global exporter of AI.

The strategy has two main pillars. One is a plan led by SK Telecom to build AI data centers nationwide with total capacity of 15 gigawatts. The other is an SK Hynix plan to expand semiconductor production capacity through 1,100 trillion won ($794 billion) of investment focused on Yongin, Cheongju and the southwest.

Build 15 Gigawatts of AI Data Centers Nationwide

SK said surging demand for AI model training and inference has made high-performance computing infrastructure a key pillar of national AI competitiveness. AI data centers provide the large-scale computing power needed to support AI applications across industries including robotics, physical AI, healthcare, culture and education.

South Korea is a competitive location for AI data centers because it has a stable power supply and a manufacturing base for high-performance AI semiconductors, the company said. Those strengths are also attracting growing interest from global technology companies.

SK Telecom will lead the group’s AI data center expansion. In the first phase, SK plans to develop 5 gigawatts of AI data center capacity across multiple regions with available land and power infrastructure. It will then add another 10 gigawatts by 2035, depending on AI demand and investment conditions.

SK estimates the project will attract about 1,000 trillion won ($722 billion) of investment through strategic partner funding, customer occupancy agreements and project financing. The company said that figure applies to the AI data center project alone and is separate from the 1,100 trillion won semiconductor investment roadmap.

SK Telecom is building an AI data center in Ulsan with Amazon Web Services, with operations targeted for the second half of 2027. It has also announced a plan with Nvidia to develop a next-generation AI data center called AI Factory. SK’s goal is to expand South Korea’s AI computing infrastructure early and position the country as an Asia-Pacific AI infrastructure hub.

Memory Production Belt to Link Yongin, Cheongju and the Southwest

In semiconductors, SK Hynix will lead the production expansion. SK said rising investment in AI data centers around the world is driving rapid growth in demand for AI semiconductors and for high-performance memory chips used in training and inference for large AI models.

SK Hynix has drawn up a mid- to long-term investment strategy worth 1,100 trillion won ($794 billion). The plan calls for building an AI memory production belt linking Yongin, Cheongju and the southwest, upgrading existing manufacturing bases and securing next-generation production sites in stages.

The Yongin semiconductor cluster had originally been scheduled for completion in 2045. SK Hynix now aims to complete construction of its fourth fab by 2033, bringing the timeline forward by 12 years. As facility and equipment investment continues in phases, total spending in the Yongin cluster will reach 600 trillion won ($433 billion).

SK Hynix will invest about 100 trillion won ($72.2 billion) in its Cheongju production base. The company plans to build a new NAND fab and install production equipment, while also strengthening advanced packaging capabilities for high bandwidth memory, or HBM, back-end processing. Cheongju is set to play a larger role as a key production base spanning NAND, HBM and advanced packaging.

New 400 Trillion Won Cluster Planned in the Southwest

SK Hynix said it will need another production base to meet longer-term growth in memory demand even after expanding its Yongin and Cheongju operations. Because chip fabs require long lead times from site selection through infrastructure development and construction, the company said it needs to move early on its next base.

The southwest has emerged as the preferred region for the new site. SK Hynix said the area offers room for a large-scale site and conditions suitable for building essential infrastructure such as power and water supply. It also considered support from the central government and local authorities for related infrastructure development.

If the project moves forward, the southwest cluster will receive about 400 trillion won ($289 billion) in phased investment covering land acquisition, fab construction and production equipment. The exact site has not been decided. SK Hynix said it will review power, water and transportation conditions, along with site availability, and consult with relevant agencies before finalizing the location and schedule.

“The ultimate goal of pursuing AI in South Korea is to activate the market for intelligence production, sharply reduce high costs across society and grow the national economy,” Chey said.

He added that the AI infrastructure SK is building, including AI data centers and semiconductor production bases, will support growth across a range of industries and become a core engine of growth for South Korea.

Chey also said the project will help shift South Korea from a country that consumes AI to one that exports it. SK will work to contribute to the country’s growth through AI and help lead the global AI ecosystem, he added.

Hong Min-seong, Hankyung.com reporter mshong@hankyung.com