South Korea announces €1,023bn 10-year AI chip and data centre investment
South Korean president Lee Jae-myung unveiled a 10-year plan worth more than €1,000 billion to build advanced chip fabs, AI-powered data centres and new semiconductor technologies, calling it a survival move in the global AI race.
Investment breakdown
The government unveiled two core projects on 29 June 2026. The first, worth 800,000 billion won (about €455 billion), will deliver four semiconductor plants: two built by Samsung Electronics and two by SK hynix, along with supporting infrastructure. The second, totalling 1,000 million billion won (€568 billion), aims to erect new AI-dedicated data centres by 2035 with a combined capacity of 10 gigawatts, raising the nation’s total capacity to 18.4 GW. The full package surpasses South Korea’s previous AI commitments and amounts to roughly two-thirds of its 2025 nominal GDP.
A year of mega-bets
- Samsung 2025
- 256 €bn
- Hyundai 2025
- 71 €bn
- National plan 2026
- 1023 €bn
Technological ambitions
The move targets semiconductors where future growth is fastest. The industry ministry listed edge-AI chips that run directly in devices, next-generation memories that are faster and more energy efficient, and defence-grade semiconductors.
With this, we will retain an overwhelming leadership position in the market and a decisive technological advantage in the memory semiconductor sector.
Honam region takes centre stage
The four new fabs will rise in the south-west Honam region, a relatively under-developed area rich in renewable electricity. The government promised to slash permit and construction timelines to speed up production. Choosing Honam also helps Seoul meet global clients’ demand for greener manufacturing, while creating a second major industrial cluster beyond the capital.
Sovereignty and survival
The president framed the plan as a “great leap forward” to keep South Korea ahead of the United States, China and Taiwan. With AI seeping into cars, education, health and defence, the programme is both a commercial play and a sovereignty project.We must invest to survive in the AI war.
