Samsung Sets $310 Billion Plan to Drive AI Growth and Chip Innovation
Samsung announced a five-year plan on Sunday to invest $310 billion, largely to strengthen technologies that support artificial intelligence. The company aims to address rapidly rising global demand as the AI boom accelerates. Its flagship unit remains one of the top memory-chip producers worldwide, and these chips continue to supply essential components for AI systems and the infrastructure behind them. Moreover, South Korea also hosts SK hynix, another influential semiconductor maker that contributes to this competitive landscape.
The new investment includes construction of Pyeongtaek Plant 5, which is designed “to meet the needs of memory-chip demands.” Once the plant reaches full operation, “the Pyeongtaek plant is expected to play an even greater strategic role in both the global semiconductor supply chain and South Korea’s domestic chip ecosystem.” The facility is scheduled to begin operating in 2028, and the company hopes this timeline will support long-term growth in chip production.
Infrastructure Projects and Domestic Growth Plans
Samsung SDS, the group’s IT and logistics arm, plans to establish two AI data centers in South Jeolla and Gumi. Although few specifics were shared, the initiative signals an effort to broaden the group’s AI-related capabilities. Additionally, Samsung Group continues to function as a network of affiliated companies with intricate cross-shareholdings rather than a single holding entity. As South Korea’s largest chaebol, it still shapes significant portions of the country’s economic activity.
The overall investment package also includes ventures outside core AI. Under the plan, Samsung SDI is exploring the development of a domestic production line “for next-generation batteries, including all-solid-state batteries.” This effort could strengthen the company’s position in electric-vehicle components while also broadening its energy-storage portfolio.
National Strategy and Market Outlook
The AI surge has boosted Samsung Electronics and SK hynix, as their high-performance memory chips have become vital to AI computing. Samsung Electronics recently reported that profit rose more than 30 percent year-on-year in the third quarter, driven mainly by AI-related demand. However, global spending on AI keeps climbing, and soaring tech valuations have raised concerns about a potential bubble similar to the dot-com era.
The announcement arrives shortly after the South Korean government pledged to triple national AI spending next year. President Lee Jae Myung has vowed to “usher in the AI era” and position the country among the world’s top three AI powers, behind the United States and China. This alignment between public policy and private investment could, therefore, reinforce the nation’s competitive standing as the industry evolves.
