South Korea-based Samsung Electronics (SSNLF) announced a massive $310 billion domestic investment plan to boost its AI ambitions and reinforce South Korea’s position in next-generation technology. The investment comes after a U.S. trade deal sparked concerns that expanding in the U.S. could weaken manufacturing at home.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
On Friday, the U.S. and South Korea outlined a new trade agreement that includes $150 billion in Korean investment for the U.S. shipbuilding industry and another $200 billion for other industrial sectors. However, the scale of these overseas commitments has raised concerns in South Korea that investing so heavily in the U.S. could weaken domestic manufacturing and shift economic strength away from home.
Inside Samsung’s Investment Plan
Under the new plan, Samsung aims to invest in its research, development, and manufacturing capabilities. A major part of this plan is speeding up construction of a key chip plant at its Pyeongtaek campus, where the company will produce chips using its most advanced process technologies.
Samsung said construction of its Line 5 chip plant in Pyeongtaek will finish in 2027, with commercial operations starting in 2028. The new line will help the company meet growing demand for high-bandwidth memory (HBM) chips used in AI servers. The company also stated that the Pyeongtaek plant will become even more important to the global semiconductor supply chain as well as South Korea’s own chip ecosystem.
Along with Samsung, Hyundai Motors (HYMLF) announced domestic investments worth ₩125.2 trillion ($86 billion) from 2026 to 2030, while shipbuilders Hanwha Ocean and HD Hyundai also unveiled investment plans.
What’s Happening with Samsung Stock?
Samsung’s Korea-listed stock has surged this year on the back of massive chip demand fueled by the AI boom. Year-to-date, the shares are up nearly 90%, while the OTC-listed shares have climbed more than 40% over the same period.
Looking ahead, the company said it expects mid- to long-term growth in demand for memory semiconductors and aims to secure production capacity in advance to respond swiftly to market shifts.
The AI revolution has created a powerful tailwind for Samsung, as its high-performance memory chips (especially HBM) have become essential components for AI computing.
