Samsung Electronics and SK hynix are set to unveil major investment plans on Monday, 30 June 2025, at a high-level briefing presided over by South Korean President Lee Jae Myung at Cheong Wa Dae. The announcements will be made at 2 p.m. local time as part of the government's three mega projects aimed at balanced regional development, according to presidential spokesperson Kang Yoo-jung.

Scale of the Investment

Industry watchers expect the two chipmakers to commit more than 1,000 trillion won (approximately US$650 billion) over the next 10 years. A key component of the plan reportedly includes the possible development of a chip cluster in the southwestern Honam region — a move that could reshape South Korea's semiconductor geography.

Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Chey Tae-won are scheduled to attend the event and participate in a discussion session alongside other stakeholders.

Government's Push for Regional Balance

The initiative is jointly driven by South Korea's trade, science, transport, and energy ministries. Finance Minister Koo Yun-cheol underscored the strategic rationale in a social media post, saying: 'Our key task is to overcome the excessive concentration in the Seoul metropolitan area and ignite the growth potential of regional areas. The government respects the decision to invest in regional areas and will spare no effort to support the initiative.'

Koo also noted that without strong government support — including guaranteed supplies of electricity and water — the companies would likely have directed these investments overseas. He further stressed the need to build competitive advantage in emerging sectors such as physical AI and AI data centres.

Presidential Backing and Political Pushback

President Lee Jae Myung on Saturday described the investment as a 'historic achievement' and a policy initiative that could 'potentially change the fate of South Korea.' The scale of political capital behind the announcement reflects how central semiconductor leadership has become to Seoul's economic strategy.

However, the opposition People Power Party has accused the move of being 'politically motivated,' pointing out that it comes at a time when the ruling Democratic Party is navigating an internal power struggle. Critics argue the timing raises questions about whether the announcement is driven by economic necessity or electoral optics.

What This Means for the Global Chip Race

This comes amid intensifying global competition in semiconductor manufacturing, with the United States, Japan, and the European Union each rolling out substantial chip incentive programmes. A ₩1,000 trillion commitment from South Korea's two largest chipmakers would represent one of the largest single-country semiconductor investment pledges in history. Notably, both Samsung and SK hynix are critical suppliers of advanced memory chips — including HBM used in AI accelerators — making their regional expansion plans closely watched by global technology markets.

Full details of the investment roadmap, including sector allocations and timelines, are expected to be disclosed at Monday's briefing.