South Korea unveils US$650 billion megaprojects to dominate AI, chip market - South China Morning Post

South Korea unveiled a massive USD 576 billion chip and AI megaproject on June 29, 2026, aimed at securing global leadership in semiconductors and artificial intelligence. Led by President Lee Jae Myu... Read original →

South Korea’s $650B semiconductor-AI megaproject represents a state-driven bid to reclaim technological sovereignty. Technologically, Samsung and SK Hynix’s HBM/DRAM expansion will catalyze localized chiplet and 3D packaging ecosystems, pressuring equipment and materials suppliers to regionalize. Compliance-wise, new fabs face steep operational risks from insufficient power, ultrapure water infrastructure, and looming ESG scrutiny. Geopolitically, this move counters TSMC’s AI foundry lead and mitigates supply chain fragility amid U.S.-led export controls. Within 18 months, global memory capacity will rebalance, triggering subsidy races in Taiwan, China and Arizona. Yet without rapid workforce development and green energy deployment, the initiative risks repeating Korea’s past regional industrial hollowing.