This announcement is causing concern in Taiwan and at TSMC, as South Korean giants are announcing massive investment plans in memory and semiconductor production. In fact, with the Korean government’s backing, the timeline has been significantly accelerated, with tangible effects on production expected by 2033 rather than 2040. This investment plan calls for the construction of new fabs as well as the expansion of existing facilities.
Samsung and SK Hynix: The Korean giants are putting $800 billion on the table!
Four to five new factories are planned, along with expansions!
With the goal of boosting memory production (DRAM and NAND), as well as semiconductor production and the construction of data centers, Samsung and SK Hynix are making major investments. Broadly speaking, they plan to build new fabs—specifically, four to five ultra-modern factories in the northern and southern regions of Chungcheong. In addition, SK Hynix has also announced major expansions of existing sites, notably in Cheongju.
Doubling production capacity within 5 years!
To meet ever-increasing demand in the semiconductor sector, this 10-year investment plan would enable chip production to double within five years. Furthermore, this should enable South Korea to strengthen its position not only against the United States and Intel but also against Taiwan and TSMC, which are expected to face increased competitive pressure.
In the meantime, these are long-term plans. For now, the market is still suffering from a supply shortage, and memory prices remain high. While some predict an improvement by 2028, the crisis will not be resolved by then. In the meantime, some are taking legal action on the grounds that the current shortage was orchestrated. However, these massive investment plans suggest the opposite.
