South Korean conglomerate Samsung announced on Sunday that it will invest three hundred ten billion dollars over the next five years to expand technology that supports artificial intelligence. The company aims to meet fast rising global demand as AI adoption continues to grow.
Samsung Electronics, the group’s flagship company, is already one of the world’s leading memory chip producers. Its chips are essential components for AI systems and the infrastructure that powers them. South Korea is also home to another major semiconductor company, SK hynix.
As part of the investment plan, Samsung will build a new semiconductor facility named Pyeongtaek Plant 5. The company said the facility is designed “to meet the needs of memory chip demands.” Once fully operational, “the Pyeongtaek plant is expected to play an even greater strategic role in both the global semiconductor supply chain and South Korea’s domestic chip ecosystem.” The plant is expected to begin operations in 2028.
Samsung SDS, the group’s information technology and logistics business, will also set up two AI data centres in South Jeolla and Gumi. The company did not share additional details about these centres.
Samsung Group operates through many affiliated companies linked through complex ownership structures rather than a single holding company. It remains South Korea’s largest chaebol, a type of family run business group that plays a major role in the national economy.
The investment plan also covers projects outside the AI sector. Samsung SDI, the group’s electric vehicle battery unit, is considering the launch of a domestic production line “for next generation batteries, including all solid state batteries.”
The global AI boom has boosted demand for high performance memory chips from Samsung Electronics and SK hynix. Samsung Electronics recently reported that its profit for the third quarter rose more than thirty percent compared with last year due to strong AI related demand.
Worldwide spending on AI continues to surge, but it has also raised concerns about a possible market bubble similar to the dot com crash that occurred at the beginning of the millennium.
The announcement follows the South Korean government’s pledge to triple its artificial intelligence spending next year. President Lee Jae Myung has promised to “usher in the AI era” and position South Korea among the top three AI powers in the world, behind the United States and China.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
