SK Maps Out $1.52 Trillion AI, Chip Investment Push to Reshape Korea’s Future

SK Group plans a nationwide buildout of artificial intelligence infrastructure in South Korea, laying out a strategy to develop AI data centers across the country and create a semiconductor manufacturing belt linking Yongin, Cheongju and the southwest.

Chairman Chey Tae-won presented the group’s medium- to long-term investment plan on June 29 at a national briefing on South Korea’s three mega projects held at the Blue House state guest house. SK said it aims to expand core AI infrastructure at home, including AI data centers and semiconductor production bases, and help turn South Korea into a global exporter of AI.

The strategy has two main pillars. SK Telecom will lead a plan to build AI data centers nationwide with total capacity of 15 gigawatts. SK hynix, meanwhile, will expand semiconductor production capacity centered on Yongin, Cheongju and the southwest with a 1,100 trillion won investment plan, equivalent to about $797 billion.

Build 15 GW of AI Data Centers Nationwide

SK said fast-rising demand for AI model training and inference has made high-performance computing infrastructure a key measure of national AI competitiveness. AI data centers provide the large-scale computing power needed to support AI adoption across industries including robotics, physical AI, healthcare, culture and education.

The company said South Korea is well positioned as a location for AI data centers because it has stable power supply conditions and a manufacturing base for high-performance AI semiconductors. SK added that those advantages are drawing stronger interest from global technology companies.

SK Telecom will spearhead the group’s AI data center expansion. In the first phase, SK plans to gradually develop 5 gigawatts of AI data center capacity across multiple sites with access to power and land. It then plans to add another 10 gigawatts by 2035, depending on AI demand and investment conditions.

SK expects about 1,000 trillion won, or roughly $725 billion, to be invested in the project through strategic partner funding, customer tenancy agreements and project financing. That figure is separate from the 1,100 trillion won semiconductor investment roadmap and refers only to the anticipated scale of investment tied to the AI data center project.

SK Telecom is already building an AI data center in Ulsan with Amazon Web Services, targeting operations in the second half of 2027. It recently also unveiled plans with Nvidia for a next-generation AI data center called AI Factory. SK said it wants to expand domestic AI computing infrastructure early and position South Korea as an Asia-Pacific AI infrastructure hub.

Memory Production Belt Linking Yongin, Cheongju and the Southwest

In semiconductors, SK hynix plans to expand its manufacturing footprint. SK said global investment in AI data centers is accelerating, fueling demand for AI semiconductors and high-performance memory chips used in large-scale AI training and inference.

To respond, SK hynix has drawn up a medium- to long-term investment strategy totaling 1,100 trillion won, or about $797 billion. The plan calls for an AI memory production belt linking Yongin, Cheongju and the southwest, while upgrading existing manufacturing sites and securing next-generation production bases in stages.

The Yongin semiconductor cluster was originally due for completion in 2045, but SK hynix now aims to finish construction of its fourth fab there by 2033, 12 years earlier than planned. If production facilities and equipment are added in phases afterward, total investment in the Yongin cluster will reach 600 trillion won, or about $435 billion.

SK hynix plans to invest about 100 trillion won, or roughly $72.5 billion, in its Cheongju production base. The company will build a new NAND fab, install production equipment and strengthen advanced packaging capabilities for high bandwidth memory post-processing. Cheongju is set to play a larger role as a key production base spanning NAND, HBM and advanced packaging.

New $290 Billion Cluster Planned in Southwest

SK hynix said it will need another production base to meet long-term growth in memory demand even after expanding Yongin and Cheongju. The company said semiconductor fabs require long lead times from site selection and infrastructure work to construction, making it necessary to prepare the next base early.

The southwest has emerged as the preferred region for that new hub. SK hynix said the area offers the potential to secure a large site and develop core infrastructure including power and water. It also cited strong support from the government and local authorities for related infrastructure development.

If the investment proceeds in earnest, the southwest cluster will receive about 400 trillion won, or around $290 billion, in phases for land acquisition, fab construction and production equipment. The precise site has not yet been selected. SK hynix said it will review power, water, transportation and land conditions, then work with relevant agencies to finalize the location and timetable.

Chey said South Korea’s ultimate goal in advancing AI is to activate what he called an “intelligence production market,” sharply cut social costs and expand the national economy. He added that the AI infrastructure SK is building, including AI data centers and semiconductor production bases, would support growth across industries and become a core pillar of the country’s future expansion.

He also said the project would help shift South Korea from an AI consumer to an AI exporter. SK will work to contribute to the country’s growth through AI and help lead the global AI ecosystem, he added.

Hong Min-seong, Hankyung.com reporter mshong@hankyung.com