South Korea's government and top tech companies are committing $1 trillion to several flagship megaprojects that could bolster global memory chip supply, build new AI data centers, and spur commercial deployment of humanoid robots by 2028. The announcement comes as South Korean companies such as Samsung and SK Hynix have enjoyed record profits and stock valuations due to the AI industry's demand for memory chips — with the subsequent supply strain leading to memory chip shortages and higher prices for consumer electronics. Meanwhile, Hyundai Motor Company is racing to mass-manufacture humanoid robots developed by its subsidiary, Boston Dynamics, so that the robotic workers can start taking over certain laborious tasks in automotive factories and other workplaces. "We must secure the core elements of AI faster than any other country," said South Korean President Lee Jae Myung in a televised speech on June 29. "Semiconductors, physical AI, and AI data centers are the triple axis for a great leap forward." The most costly megaproject involves a commitment by Samsung and SK Hynix of $585 billion to build new chip fabrication plants in the southwest provinces of South Korea, along with boosting semiconductor fab construction in the Seoul capital region. The government's goal is to double South Korea's production of dynamic random-access memory (DRAM) within five years. A second megaproject involves a $357 billion investment by the South Korean tech companies SK Group, GS Group, and Naver to build large-scale AI data centers in more outlying provinces. The initiatives also coincide with public debates about South Korean chipmakers' huge profits during the AI boom and even policymaker proposals to distribute the excess wealth, along with South Korean labor unions pushing back against the prospect of humanoid robots entering the workforce.
South Korea to spend $1T on more memory chip production and humanoid robots
updated at June 29, 2026