A $310 billion power move: Samsung is gearing up to take the lead in the AI revolution. Picture Credit: Tango
By Thulane Madalane
In one of the largest technology commitments ever announced, Samsung has unveiled a $310 billion (R5.8 trillion) investment plan to supercharge its artificial intelligence expansion — a bold five-year strategy that cements South Korea’s position as a global tech powerhouse.
The investment comes as the world races toward an AI-driven future, with demand for high-performance memory chips, data infrastructure, and next-generation computing skyrocketing. Samsung, already one of the most critical suppliers to the global AI industry, is gearing up to lead that future.
At the heart of the plan is the construction of a cutting-edge semiconductor facility, Pyeongtaek Plant 5, designed to meet an unprecedented global surge in memory-chip demand.
Once fully operational in 2028, the new plant will strengthen both the global semiconductor supply chain and South Korea’s domestic chip ecosystem — a crucial move amid rising international competition and geopolitical pressure around chip production.
Samsung SDS, the company’s IT and logistics arm, will also open two advanced AI data centres in South Jeolla and Gumi. These centres will support everything from AI model training to high-throughput cloud computing — infrastructure desperately needed as AI adoption explodes across every industry.
Though Samsung has not yet revealed the specifications, analysts say these sites could become some of the most powerful AI computing hubs in Asia.
The $310 billion plan isn’t just about AI. Samsung SDI — the group’s electric-vehicle battery company — is exploring a domestic production line for next-generation batteries, including the game-changing all-solid-state battery, expected to reshape the future of electric vehicles with faster charging and significantly longer driving ranges.
AI has already ignited massive momentum for Samsung and its competitor SK hynix, which together supply high-performance memory chips essential for training and running advanced AI models like ChatGPT. Samsung Electronics reported a 30% year-on-year profit jump in the third quarter — a surge driven almost entirely by AI demand.
But with the growing hype, some analysts warn of a potential “AI bubble,” echoing concerns similar to the dot-com boom of the early 2000s. Still, the industry’s biggest players seem unfazed, betting long-term on AI becoming as foundational as electricity or the internet.
Samsung’s announcement follows South Korea’s own major pledge to triple government AI spending next year — part of President Lee Jae Myung’s mission to make the country one of the world’s top three AI powers, behind only the United States and China.
The massive investment marks a defining moment not only for Samsung, but for South Korea’s entire tech landscape as the global race for AI dominance intensifies.
