South Korean Government in Talks with Samsung and SK Hynix on Major New Semiconductor Investment Initiative

Deep News06-24

The South Korean government is currently in discussions with Samsung Electronics and SK Hynix regarding a new, large-scale investment plan for the next phase of semiconductor production facilities, with an announcement on establishing new chip industry clusters expected soon.

Kim Yong-pan, the Presidential Chief of Staff for Policy, stated at a seminar that chip demand, driven by the artificial intelligence sector, is experiencing "exponential and explosive" growth. This surge may require the two companies to advance their ongoing construction of new chip factories by over a decade, targeting completion by 2034-2035.

He highlighted the challenge of supporting the AI revolution, noting that the key issue for the next phase, looking 7 to 8 years ahead, is securing a vast new site to build a second major industrial cluster.

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