South Korea to spend $1T on more memory chip production and humanoid robots

Key Points:

• South Korea’s government and leading tech companies, including Samsung and SK Hynix, are committing $1 trillion to megaprojects aimed at expanding memory chip production, building AI data centers, and deploying humanoid robots by 2028 to strengthen the country’s AI and semiconductor industries.
• Samsung and SK Hynix plan to invest $585 billion in new chip fabrication plants to double South Korea’s DRAM production within five years, while SK Group, GS Group, and Naver will invest $357 billion in AI data centers across several provinces, though large-scale operations may take years to become fully operational.
• The projects require significant electricity and water resources, prompting the government to secure additional power supplies from renewable energy, nuclear, and fossil fuels, amid concerns over energy vulnerability due to reliance on natural gas imports.
• Hyundai Motor Company is investing $5.8 billion to mass-produce humanoid robots developed by Boston Dynamics, targeting deployment in 10 industries by 2028, but labor unions are pushing back strongly, with strikes approved over fears of job losses and demands for profit-sharing.
• Public debate surrounds the massive profits of South Korean chipmakers during the AI boom, with government officials encouraging profit-sharing with workers and suppliers, and discussions of a possible “national dividend” from AI-driven tax revenues sparking controversy.