# South Korea Announces Record $518 Billion Investment in Semiconductor Industry

*South Korea has unveiled a record $518 billion investment in AI chip-building, focusing on its under-developed southwestern region.*

June 29, 2026 · business

## At a glance

- South Korea announces a record $518 billion investment in AI chip-building.
- The project will focus on the under-developed southwestern region.
- It includes four fabrication plants and a network of partner companies.
- Industry Minister Kim Jung-kwan made the announcement at the presidential office.
- The investment aims to stimulate economic growth and reduce regional disparities.

South Korea is set to embark on a monumental $518 billion investment in AI chip-building, marking the largest such initiative in the nation's history. This ambitious project, announced by the government and major electronics companies, aims to significantly bolster the semiconductor industry in the comparatively under-developed southwestern region of the country.

## Details of the Investment

The 800 trillion won ($518 billion) project will encompass the construction of four fabrication plants and the establishment of a network of partner companies. Industry Minister Kim Jung-kwan revealed these plans during a press conference held at the presidential office.

## Strategic Focus on Under-Developed Region

A key aspect of this investment is its focus on the southwestern region of South Korea, an area that has historically lagged in industrial development. By targeting this region, the government aims to stimulate economic growth and create new job opportunities, thereby reducing regional disparities.

## Collaboration with Major Electronics Companies

The project will involve significant collaboration with leading electronics companies, although specific names have not been disclosed. This partnership is expected to leverage the expertise and resources of these industry giants to ensure the success of the initiative.

## Long-Term Vision for the Semiconductor Industry

This investment is part of South Korea's long-term strategy to solidify its position as a global leader in the semiconductor industry. By focusing on AI chip-building, the country aims to stay at the forefront of technological innovation and maintain its competitive edge in the global market.

## Sources

- BSS

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Source: https://pulsetoday.com.bd/en/business/south-korea-announces-518-billion-semiconductor-investment