Samsung to Unveil $724 Billion, Decade-Long Investment Blueprint Across Honam, Chungcheong and Yeongnam

Samsung Prepares Record Manufacturing Investment Plan to Match Government Mega-Project Push

Honam Eyed for Semiconductors, Chungcheong for Displays, Yeongnam for AI-Driven Manufacturing

Affiliates to Join Decade-Long Spending Program, With Formal Announcement Due June 29

Samsung is preparing a nationwide, long-term investment plan with key affiliates including Samsung Display Co. and Samsung SDI Co., starting with the development of a semiconductor cluster in the Honam region, according to industry and government officials.

The project is projected to exceed 1,000 trillion won ($724 billion) over the next 10 years.

Samsung plans to present the blueprint on June 29 at the “National Report Meeting on Korea’s Three Major Leap Forward Mega Projects,” which will be chaired by President Lee Jae-myung, according to industry and government sources on June 28.

The plan is intended to align with the government’s regional development strategy of “five poles and three special zones” — five ultra-wide regional blocs and three special self-governing cities and provinces — as well as its three mega projects in semiconductors, physical AI and AI data centers.

Under the plan, Honam would host a large semiconductor cluster spanning both front-end and back-end production.

Industry officials say as many as five semiconductor plants could be built there. Construction costs are estimated at about 60 trillion won ($43.4 billion) per fab.

That implies construction spending alone of about 300 trillion won ($217.1 billion). The impact would be larger if supplier networks and power and water infrastructure are included.

In the Chungcheong region, the focus is on upgrading the ecosystem for advanced materials and components.

Samsung Display is set to invest about 100 trillion won ($72.4 billion) over 10 years in next-generation display technology, with its Asan and Cheonan campuses serving as production bases.

Samsung SDI’s Cheonan site is expected to expand battery production capacity in line with growth in next-generation mobility and physical AI. Samsung Electro-Mechanics Co.’s Sejong site is also poised to increase production capacity for high-value semiconductor substrates.

There is also speculation that Samsung Electronics Co. Chairman Jay Y. Lee could visit the Asan campus on July 2 to present the investment vision himself.

In the Yeongnam region, AI-based manufacturing upgrades are the central focus.

Samsung Electronics plans to strengthen AI-driven manufacturing competitiveness in its mobile and home appliance operations at its Gumi site in North Gyeongsang Province.

Samsung Electro-Mechanics’ Busan site is set to expand production of multilayer ceramic capacitors, or MLCCs, and semiconductor substrates. Samsung SDI’s Ulsan site is expected to expand production facilities in response to rising demand for energy storage systems, or ESS, as AI infrastructure spreads.

In Incheon, investment in biotechnology centered on Samsung Biologics Co. is expected to continue.

Samsung’s announcement of the long-term plan is also likely to speed up nationwide investment talks between the government and major companies tied to the three designated mega projects, including Hyundai Motor Group and LG Group.

Hyundai Motor Group is already investing in Saemangeum in North Jeolla Province to foster it as a hub for future mobility and physical AI. LG Group has identified physical AI and AI infrastructure expansion as new growth engines and is pursuing cooperation with Nvidia.

Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com