South Korean giant Samsung has revealed a $310 billion investment plan for the next five years, primarily focusing on AI technology to cater to the rising demand spurred by a global surge. Samsung Electronics, a key player in the memory-chip market, supplies essential components for the AI sector and its infrastructure needs.
The conglomerate’s investment strategy involves constructing a new semiconductor facility called Pyeongtaek Plant 5, specifically catering to memory-chip requirements. The Pyeongtaek plant is expected to enhance Samsung’s role in the global semiconductor supply chain and South Korea’s chip ecosystem upon full operation in 2028.
Additionally, Samsung SDS, the group’s IT and logistics division, will establish two AI data centers in South Jeolla and Gumi. Samsung Group comprises interconnected companies under the Samsung brand, representing South Korea’s largest chaebol, influential family-controlled conglomerates shaping the national economy.
The $310 billion initiative encompasses projects beyond AI, including Samsung SDI’s exploration of setting up a domestic production line for next-gen batteries like all-solid-state batteries. The AI industry’s growth has significantly benefited Samsung Electronics and SK hynix, with their memory chips in high demand for AI computing.
Samsung Electronics reported a profit surge of over 30% year-on-year in the third quarter, fueled by AI-driven demands. As global AI-related expenditures rise, concerns about a potential market bubble akin to the dot-com era have emerged. This investment plan aligns with South Korea’s commitment to tripling AI spending next year, aiming to position the country among the top three AI leaders globally, following the US and China.