AI investment: Samsung unveils $310 bn expansion; new chip plant and data centres anchor push

Samsung has announced a sweeping $310-billion investment plan over five years, aimed largely at expanding semiconductor and AI-enabling infrastructure as the global artificial intelligence boom drives unprecedented demand. The package, unveiled on Sunday, strengthens South Korea’s position as one of the world’s leading chip and AI hubs and builds on the country’s broader strategy to become a top-three global AI power, AFP reported.At the core of the plan is a major semiconductor buildout anchored by Pyeongtaek Plant 5, a new memory-chip facility designed “to meet the needs of memory-chip demands,” Samsung said. Scheduled to begin operations in 2028, the plant is expected to play a “greater strategic role in both the global semiconductor supply chain and South Korea’s domestic chip ecosystem.”Samsung Electronics, already one of the world’s largest memory-chip makers, has seen profits jump more than 30% year-on-year in the third quarter, fuelled by AI-driven demand for high-performance chips. Rival SK hynix, also a key global player, continues to benefit from similar trends.Samsung SDS, the group’s IT and logistics arm, will build two AI data centres in South Jeolla and Gumi. While specific details were not disclosed, the facilities will support large-scale computing workloads needed for AI development and deployment.Samsung Group, a network of cross-linked companies rather than a single holding entity, remains South Korea’s largest chaebol and a dominant force in its tech-driven economy.The investment package includes diversification beyond AI. Samsung SDI, the group’s EV-battery affiliate, is exploring a domestic production line for next-generation batteries, including all-solid-state batteries—considered a crucial technology for the future of electric mobility.Global AI-related spending continues to rise sharply, pushing tech stock valuations higher and prompting comparisons with the dot-com boom. Despite concerns of an asset bubble, governments and companies are accelerating investment. The South Korean government has pledged to triple national AI spending next year, with President Lee Jae Myung vowing to “usher in the AI era” and position the country behind only the United States and China.