South Korea to Invest $1.2 Trillion in AI and Chip Industry

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Seoul : South Korea has unveiled a nearly $1.2 trillion investment plan to expand its artificial intelligence infrastructure and semiconductor industry, aiming to strengthen its global technology leadership and boost development in the country's southwest.

The plan includes an 800 trillion won ($520 billion) investment by Samsung Electronics and SK hynix to build a new semiconductor manufacturing hub with four fabrication plants. The government will also invest one quadrillion won (about $650 billion) in AI data centres over the next decade.

President Lee Jae Myung said the investment is essential to keep South Korea ahead in the global AI race, while officials said the project would help develop the southwest into a second major semiconductor production hub.

Analysts said the plan could strengthen the country's chip industry but warned that building a new manufacturing ecosystem outside the Seoul region would take time and require significant infrastructure and skilled workers.