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Updated Jul 12, 2026 · 09:15
Business World News Updated Jul 12, 2026

Samsung Accelerates Yongin Chip Plant Opening to 2029 for AI Demand

Samsung Electronics is advancing the opening of its first semiconductor plant in the Yongin chip cluster to 2029, one to two years earlier than planned. The move is driven by surging global demand for artificial intelligence chips and government acceleration of the national industrial complex. The company plans to invest 2,030 trillion won in its Pyeongtaek and Yongin clusters, while SK Group pledges 470 trillion won for new fabs and an AI data centre. The South Korean government supports these investments as part of its tripolar mega projects to boost AI industry growth.

Samsung Electronics to bring forward opening of 1st Yongin chip plant to 2029

Seoul, July 12

Samsung Electronics is moving to begin operations at the first semiconductor fabrication plant in its Yongin chip cluster in 2029, one to two years earlier than planned, industry sources said on Sunday.

The accelerated timeline comes as the government speeds up development of the Yongin National Industrial Complex, a national strategic project set to serve as the company's next-generation semiconductor manufacturing hub, reports Yonhap news agency.

Samsung is currently planning to begin operations in 2029 at the first of six semiconductor plants to be built at the Yongin industrial complex, just south of Seoul, according to the sources.

"An earlier start of operations at the first plant will enable Samsung to respond more quickly to rapidly growing global demand for artificial intelligence chips," an industry official said.

Separately, the chipmaker said last month that, under its mega project investment plan, it plans to invest 2,030 trillion won (US$1.35 trillion) in its Pyeongtaek and Yongin semiconductor clusters, along with 400 trillion won to build two new chip plants in Gwangju, 270 kilometers south of Seoul.

Meanwhile, Samsung Group and SK Group vowed a combined investment of 896 trillion won ($578 billion) in the southwest region, in line with the government's vision of pursuing shared growth in the artificial intelligence (AI) industry, the industry ministry said.

In response to the investment pledges, the Ministry of Trade, Industry and Resources pledged to provide the necessary support for their smooth implementation.

The announcement came after the government unveiled what it calls the tripolar mega projects, aimed at advancing technologies across the country and turning South Korea into an industrial powerhouse in the emerging AI era.

In detail, SK Group pledged to invest 470 trillion won in the southwest region to build two semiconductor fabs, as well as a 1-gigawatt AI data centre.

— IANS

Reader Comments

Priya S

Great to see such massive investments in semiconductor manufacturing! But I hope the Korean government ensures the gigawatt AI data centre doesn't strain their power grid or worsen pollution. Environment and tech need to go hand in hand. 🤔

Arjun K

Meanwhile, our chip manufacturing dreams in India are still gathering dust! We need this kind of speed and scale. Samsung's Pyeongtaek and Yongin clusters show what government-industry collaboration can achieve. Hope our policies in Gujarat and Karnataka learn from South Korea's model.

Sneha F

The AI race is real! Samsung investing 2030 trillion won is mind-boggling. I just hope this means more affordable smartphones and better chips for us consumers. Also, SK Group's 1GW AI data centre will be a game-changer for cloud computing. Global tech ecosystem should benefit. 🇮🇳

Rajesh Q

Why is Samsung rushing? Quality over speed, I say. The semiconductor industry is notoriously complex. Adding two new plants in Gwangju while also accelerating Yongin could stretch resources thin. But then again, maybe they know something we don't about AI chip demand. Let's wait and watch.

Nisha Z

South Korea is going all-in on semiconductors! This tripolar mega projects vision is impressive—Yongin for fabs, Pyeongtaek for clusters, Gwangju for new plants. The government support is crucial. I wish India could replicate this for our electronics manufacturing goals. 🚀

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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