Samsung Group and SK Group have unveiled an unprecedented investment plan: a combined 2,000 trillion won (approximately $1.3 trillion) over the next decade to massively expand semiconductor manufacturing capacity in South Korea. The plan marks the largest corporate investment in the country's history and sits at the core of President Lee Jae-myung's flagship industrial strategy.
Gwangju Becomes the Battleground for Two Giants
According to a report by the Korea Economic Daily on June 29, 2026, Samsung Electronics and SK Hynix will each build 4 to 5 semiconductor fabs in Gwangju, forming a "super cluster" on the western side of the Korean Peninsula. Samsung will also expand its packaging facility in South Chungcheong Province, while SK Hynix will increase NAND production in North Chungcheong Province. Gwangju's favorable location and government subsidies have turned it into a central hub, setting the stage for a massive capacity surge over the coming decade.
Stocks Dip First, Then Analysts Point to Supply Chain Gains
Just before the announcement, the KOSPI index fell more than 3%, with Samsung and SK Hynix dropping about 5% and 4.5% respectively, as markets interpreted the massive capex as a near-term drag on profits. However, NH Investment & Securities in Seoul highlighted that the beneficiary sectors extend beyond chips: specialty power equipment, grid infrastructure, and construction will directly benefit. Eugene Securities analyst Huh Jae-Hwan noted, "The core problem of Korea's domestic stock market is the lack of competitive alternative sectors beyond semiconductors. This large-scale industrial project fills that gap." The KOSPI is up roughly 93% year-to-date.
Taiwan Perspective: Similar Bet, Different Cards
Taiwan's semiconductor industry is also in an expansion cycle — TSMC's 2026 capex reached NT$1.6 trillion (about $51 billion). Samsung and SK Hynix's individual 1,000 trillion won (~$65 billion each) over ten years already approaches TSMC's five-year total. Combined, the 2,000 trillion won exceeds TSMC's decade-long plan. This reflects the logic of the global memory market: Samsung and SK Hynix collectively command over 70% of DRAM and over 50% of NAND market share. Sustained capex is the only way to maintain their lead. The "trillion-level" investment will channel more resources into advanced process nodes and HBM (high-bandwidth memory).
Timing Tied to Global Central Bank Forum
The announcement date — June 29 — coincides with the eve of the Sintra Forum, where the Fed, ECB, BOE, and Bank of Canada gather. Samsung and SK Group deliberately linked Korea's semiconductor expansion narrative with global monetary policy discourse. For Taiwanese investors, the plan offers a window into Korea's chip supply chain: new fab construction in Gwangju and Chungcheong will drive demand for construction, equipment installation, and power infrastructure over the next two to three years. Taiwanese equipment suppliers that can secure orders stand to benefit.