South Korea’s Samsung Group announced Sunday a plan to invest $310 billion over five years, primarily in artificial intelligence (AI) technologies, to meet growing global demand.
Samsung Electronics, the group’s flagship company, is a global giant in memory chip manufacturing and provides vital components for the AI industry and its infrastructure.
The investment package includes plans to build a new semiconductor facility designed “to meet the growing demand for memory chips,” the group said.
It explained that when fully operational, the Pyongtech plant “is expected to play a more strategic role in both the global semiconductor supply chain and the South Korean chip ecosystem.”
The new facility is scheduled to begin operations in 2028.
Samsung SDS, the group’s technology arm, will also establish two AI-related data centers.
The $310 billion investment plan includes some projects unrelated to AI.
Samsung SDI, a company specializing in electric vehicle batteries, is considering establishing a local production line for "next-generation batteries," the South Korean conglomerate announced.
Artificial intelligence has provided a boost to South Korean technology companies.
Samsung Electronics reported that its profits increased by more than 30 percent year-on-year in the third quarter, driven by demand generated by artificial intelligence.
Investment in this sector is booming globally, raising concerns about a market "bubble" similar to the one that plagued dot-com companies at the beginning of the millennium.
Samsung's investment package comes after the South Korean government pledged to increase spending on artificial intelligence next year, aiming to make the country one of the top three global powers in this field, alongside the United States and China.
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