# Samsung and SK Expand Semiconductor and AI Infrastructure in South Korea

Samsung Electronics and SK Group announced major investments totaling over 2,700 trillion Korean won to expand semiconductor manufacturing and AI data center infrastructure across South Korea, emphasizing regional development beyond the capital area. Samsung plans to build a new semiconductor fabrication plant in Gwangju along with other advanced production facilities, supported by government incentives including power, water supply, and workforce training. SK Group is accelerating semiconductor fab projects in Yongin, Cheongju, and the Southwest region, while SK Telecom leads a nationwide AI data center initiative targeting 15GW capacity by 2035. These investments align with South Korean government policies to decentralize industrial bases and foster AI-driven economic growth.

- **Why this matters:** Procurement professionals should note the scale of these multi-trillion won investments, which will create significant contracting opportunities in semiconductor fabrication, AI infrastructure, and related services across multiple regions.
- The focus on regional hubs like Gwangju, Haenam, and Gochang indicates a strategic shift toward decentralization, opening new markets beyond Seoul.
- Companies specializing in advanced manufacturing, infrastructure development, utilities, and workforce training may find increased demand as these projects progress.
- The long-term AI data center buildout by SK Telecom suggests sustained procurement needs through 2035, emphasizing opportunities in energy, construction, and digital infrastructure sectors.

**Jurisdictions:** sled
**Industries:** Information Technology
**Topics:** Physical Infrastructure, Digital Infrastructure
**Published:** June 29, 2026

### Government Entities
- South Korean Government

### Vendors
- Samsung Electronics (prime contractor)
- SK Hynix (prime contractor)
- Samsung SDS (prime contractor)
- Samsung Display (prime contractor)
- SK Telecom (prime contractor)

### Key Quotes
> We are planning Gwangju as a candidate site, where incentives such as power and water supply, workforce training, and infrastructure support are expected.
> — Lee Jae-yong, Chairman of Samsung Electronics

> This project will lay the foundation for South Korea to transition from a country that consumes AI to one that exports AI.
> — Chey Tae-won, Chairman of SK Group

### Sources
- [Samsung, SK to Invest Trillions in Regional Semiconductor, AI Hubs ](https://www.chosun.com/english/industry-en/2026/06/29/7KRYAY372FDINL5C5RO4VVCRF4) - 조선일보