Samsung to invest $310bln in AI, semiconductor expansion

By Al Mayadeen English
Source: Agencies
Today 16:50

Samsung's plan is set to reinforce South Korea's position in the global AI race.

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A logo of Samsung Electronics is seen at an exhibition hall for the Asia-Pacific Economic Cooperation (APEC) in Gyeongju, South Korea, Thursday, October 30, 2025. (AP)

South Korean conglomerate Samsung announced on Sunday a sweeping $310 billion investment plan over the next five years, with a major focus on artificial intelligence and semiconductor infrastructure, aiming to position itself at the forefront of a rapidly evolving global tech landscape.

The group’s flagship, Samsung Electronics, is already one of the world’s top memory-chip manufacturers, supplying key components that power artificial intelligence systems and their supporting infrastructure.

The five-year package includes the construction of a new semiconductor facility, Pyeongtaek Plant 5, which Samsung says is designed to meet the rising global demand for memory chips.

Once fully operational, the Pyeongtaek site is expected to take on an even more strategic role in both the international semiconductor supply chain and South Korea’s domestic chip industry. The facility is scheduled to begin operations in 2028.

AI data centers and EV battery development included

Samsung SDS, the group's IT and logistics arm, will build two artificial intelligence data centers in South Jeolla and Gumi. While specific details have not been disclosed, the move signals a growing focus on the AI infrastructure sector.

In addition to its AI initiatives, Samsung SDI, the conglomerate’s electric-vehicle battery subsidiary, is exploring the development of a domestic production line for next-generation batteries, including all-solid-state batteries.

Government vision aligns with corporate strategy

The announcement comes as the South Korean government pledges to triple its spending on artificial intelligence in the coming year. President Lee Jae Myung has vowed to make the country one of the top three AI powers globally, trailing only the United States and China.

The recent AI boom has significantly boosted demand for high-performance memory chips produced by Samsung Electronics and fellow South Korean tech giant SK hynix. Samsung Electronics reported a profit increase of over 30% year-on-year in the third quarter, driven largely by AI-related demand.

While some analysts warn of a potential market bubble echoing the early 2000s dot-com burst, the momentum behind AI-related investment remains strong, with Samsung placing itself firmly at the center of that growth.