Samsung Group and SK hynix jointly pledged $173 billion (240 trillion won) to develop South Korea’s Chungcheong region as an AI supply chain hub. Samsung’s $101 billion (140 trillion won) plan targets HBM, OLED, batteries, and AI packaging across Asan, Onyang, Cheonan, and Sejong — aiming to create 250,000 jobs. SK hynix committed $72 billion (100 trillion won) for NAND and packaging in Cheongju, including an M17 fab launching in 2029 and a 1-GW AI data center. Announced July 2, 2026, the initiative forms part of President Lee Jae-myung’s strategy to decentralize semiconductor infrastructure beyond Seoul.
According to www.ajupress.com, Samsung Group and SK hynix jointly announced a combined investment of 240 trillion won ($173 billion) in South Korea’s Chungcheong region to establish it as a dedicated AI supply chain hub — a strategic move to anchor semiconductor, memory, battery, and advanced packaging infrastructure outside the Seoul metropolitan area.
Government-backed industrial vision
The announcement was made on July 2, 2026, during the government’s “Chungcheong Advanced Industry Development Vision” event held at Samsung Display’s Asan campus. South Korean President Lee Jae-myung attended alongside Finance Minister Koo Yun-cheol, Samsung Electronics Executive Chairman Jay Y. Lee, Celltrion Chairman Seo Jung-jin, and SK hynix CEO Kwak Noh-jung. President Lee emphasized the region’s unique convergence of semiconductors, displays, batteries, and biotechnology — calling it a foundation for global leadership in the AI era.
The president drew a historical parallel between Jay Y. Lee’s decision and founder Lee Byung-chull’s 1983 entry into semiconductors, stating:
“Just as that visionary decision made Korea a semiconductor powerhouse, I am confident Chairman Jay Y. Lee’s decision will lead a new leap forward for the country’s advanced industries.” — Lee Jae-myung, President of South Korea
Samsung’s 140-trillion-won expansion
Samsung plans to invest 140 trillion won across Chungcheong — spanning display, memory, battery, and packaging sectors — with the goal of creating approximately 250,000 jobs. A central pillar is Samsung Electronics’ HBM (high-bandwidth memory) initiative: five new fabrication lines will be built at its Onyang campus, while existing HBM-related equipment in Cheonan will be expanded and modernized to support next-generation AI memory production.
- Samsung Display will scale OLED production in Asan for smartphones, IT devices, extended reality, automotive systems, humanoid robots, and wearables — aiming to complete a next-generation display cluster;
- Samsung SDI will establish a new battery “mother line” in Cheonan to validate next-gen battery technologies before global rollout;
- Samsung Electro-Mechanics will expand AI server package substrate manufacturing in Sejong and increase R&D investment there.
SK hynix’s 100-trillion-won NAND and packaging push
SK hynix pledged 100 trillion won for Cheongju-based infrastructure, citing surging demand for NAND flash storage driven by agentic AI and physical AI deployments. Of that, 80 trillion won will fund construction of its M17 NAND fabrication plant; the remaining 20 trillion won will go toward P&T7, an advanced packaging facility scheduled for completion by the end of 2027. Construction of the M17 fab is set to begin next year, with operations targeted for the first half of 2029.
CEO Kwak Noh-jung highlighted site readiness:
“Cheongju is the most efficient location for rapidly building new NAND production capacity because it already has the land, electricity and industrial water infrastructure needed for expansion.” — Kwak Noh-jung, CEO of SK hynix
The company also confirmed plans to build a 1-gigawatt AI data center in Chungcheong — part of SK Group’s nationwide target of up to 15 GW of AI data center capacity — integrating chip manufacturing with AI computing infrastructure.
Regional strategy and industry context
This investment blueprint follows the government’s announcement earlier in the week of large-scale advanced industry projects for the Honam region — reinforcing President Lee’s policy of dispersing high-tech infrastructure beyond Seoul through region-specific industrial clusters. Chungcheong’s geographic proximity to existing Samsung and SK hynix facilities — including Asan, Cheonan, Sejong, and Cheongju — enables rapid logistics integration and shared utility infrastructure, reducing time-to-market for AI hardware components.
From a supply chain perspective, consolidating materials, memory, packaging, and power infrastructure within a single region reduces cross-regional transport dependencies, mitigates geopolitical transit risks, and accelerates prototyping-to-production cycles for AI servers and accelerators. The scale of investment — $173 billion across two corporate groups — represents the largest coordinated private-sector commitment to AI hardware infrastructure in South Korea to date, exceeding the total value of the country’s 2023 national semiconductor R&D budget ($5.2 billion, per Ministry of Trade figures).
Source: ajupress.com
Compiled from international media by the SCI.AI editorial team.
