On the 30th, Hana Securities analyzed that Samsung Electronics and SK hynix's long-term semiconductor and artificial intelligence (AI) investment plan announced with the government should be closely examined for its impact on future memory supply and demand and whether infrastructure can be secured.
Kim Rok-ho, a researcher at Hana Securities, said in a report titled "Announcement and disclosure of a large-scale long-term semiconductor project" that "this announcement is the largest-ever investment predicated on a super-boom in AI-era memory, and a strategic choice to strengthen the global supply chain and secure technological leadership." In particular, the researcher said it is positive in terms of securing long-term visibility into the memory leadership of Samsung Electronics and SK hynix.
The plan focuses on building a production belt linking Yongin, Cheongju and the southwest region and fostering Honam as a second semiconductor hub to respond to a surge in AI memory demand. The investment period is long term at more than 10 years, and it will be implemented in stages depending on market demand and infrastructure (power, water, workforce) conditions.
However, Kim noted that "there is a possibility that the magnitude and speed of memory supply increases will accelerate, and concerns may remain in terms of the supply-demand balance." In the memory industry, the balance between supply and demand is key, so even if demand is strong, prices fall if supply exceeds it.
The researcher also advised that, despite the willingness to expand semiconductor capacity, the feasibility should be checked due to power and water issues. Kim said, "Regarding power and water, which are essential for operating semiconductor plants, the government pledged a daily water supply network of 1 million tons for the Honam region and undergrounding of the power grid in the Yongin industrial complex along with rapid construction of transmission and distribution networks," adding, "Going forward, the speed of government budget execution and the process of coordinating permits among local governments will be the key variables determining the practical feasibility of this semiconductor investment."
The previous day, Samsung Electronics and SK hynix joined hands with the government to jointly announce a large-scale long-term AI and semiconductor investment plan at the "Korea Great Leap Three Mega Projects National Briefing." The Samsung Group's total investment amounts to 2,655 trillion won, of which Samsung Electronics will invest 2,450 trillion won by 2040. In particular, 2,100 trillion won is allocated to the semiconductor sector. Samsung Electronics will invest 1,650 trillion won in Yongin and existing semiconductor complexes and 400 trillion won in two new semiconductor fabs in Gwangju. By region, 425 trillion won will be invested in the Honam region, 140 trillion won in the Chungcheong region, and 60 trillion won in the Yeongnam region, with investment outside the Seoul metropolitan area alone reaching 625 trillion won.
SK Group will also invest a total of 2,100 trillion won. It allocated 1,100 trillion won to semiconductors and about 1,000 trillion won to AI data centers. SK hynix did not specify the exact investment period, but it will invest 600 trillion won in the Yongin semiconductor cluster, moving up the target timing for building a fourth fab by 12 years from 2045 to 2033. It plans to invest 100 trillion won in the Cheongju production base and 400 trillion won in a new cluster in the southwest region (Honam).