How South Korea’s AI megaprojects aim to ‘maintain edge’ over China, meet demand

South Korea has launched a US$518 billion semiconductor initiative, referred to as the "Three Mega Projects," to leverage the artificial intelligence boom and maintain a competitive edge against China. Unveiled by President Lee Jae Myung on Monday, June 30, 2026, the plan focuses on semiconductors, physical AI, and AI data centers. The objective is to secure advanced memory chips essential for AI infrastructure and establish a second major chipmaking hub in the country's southwest, alleviating pressure on the Seoul metropolitan area. This strategy aims to solidify South Korea's position as a global technology leader.

South Korea has announced a significant investment drive exceeding $1 trillion in artificial intelligence and semiconductor projects, aiming to secure global industry leadership. President Lee Jae Myung framed the initiative as a critical race against time. Key components include Samsung Electronics and SK Hynix investing 800 trillion won ($518 billion) to build new chip fabrication sites in the southwest. Additional investments will fund AI data centers and a chip-packaging cluster. The government plans to build 10-gigawatt AI data centers by 2035 with a total investment exceeding $648 billion. This push aims to revive economies beyond the Seoul metropolitan area, though some opposition critics suggest regional politics influenced site selection.

South Korea has announced ambitious chip and AI megaprojects, with President Lee Jae Myung pledging over US$576 billion in investments over several years to achieve industry leadership. This initiative represents President Lee's significant effort to connect national AI and chip goals with his commitment to reducing regional economic disparities and revitalizing areas outside the Seoul metropolitan region. The announcement was made on Monday and was attended by the leaders of Samsung Electronics and SK Hynix, the two largest global memory chip manufacturers.