Samsung Electronics and SK Hynix will invest 800 trillion won ($518 billion) to build a semiconductor manufacturing hub in southwestern South Korea. South Korean President Lee Jae Myung joined the companies to unveil the initiative.
The project aims to meet surging global demand for artificial intelligence chips. Samsung will construct two new fabrication plants in Gwangju as part of the plan.
The investment establishes a national ecosystem spanning advanced production to AI data centers. Samsung shares fell 4.86% amid intraday volatility as investors weighed the project's long-term capital requirements.