Samsung Electronics and SK Hynix to Invest 210 Trillion Won in AI Semiconductors

Samsung Electronics and SK Hynix will spend a combined total of up to 210 trillion won to expand production facilities in response to surging demand for artificial intelligence (AI) semiconductors. Capital expenditure refers to spending on new factories, buildings, and machinery, and is a key strategy for increasing future sales volume. According to reports on the 29th, Samsung Electronics' additional capital expenditure amounts to 90–110 trillion won, while SK Hynix's is approximately 100 trillion won. The investments are intended to address expanded supply and demand for memory products such as HBM (high bandwidth memory) amid the AI semiconductor boom.

Excluding amounts already confirmed and executed under Samsung Electronics' investment plan, the remaining amount reaches up to 75 trillion won. Samsung Electronics has already spent 30 trillion won of this in the third quarter. To date, 35 trillion won has been confirmed and executed, with the remaining 55–75 trillion won to be deployed within a year through the issuance of perpetual bonds (bonds that pay interest until maturity without repaying principal).

SK Hynix recently announced a 40 trillion won investment, followed by plans for an additional 60 trillion won investment. Of the total converted investment amount, the first half exceeds 30 trillion won and the second half exceeds 60 trillion won.

The total projected capital expenditure by domestic semiconductor companies amounts to 636.9 trillion won. Samsung Electronics' projection stands at 369.6 trillion won and SK Hynix's at 267.3 trillion won. Industry observers pointed out that for this massive investment to translate into actual facility and order results, further verification of HBM supply and demand conditions is needed.