Samsung, SK to Invest 90 Trillion Won in AI Data Centers in Southwest Korea

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "AI-based personalized news recommendation and summarization service" developed with support from the Korea Press Foundation. It selects and provides six customized news items tailored to each reader type.

1. "Samsung and SK to Build 90 Trillion Won Data Centers in Honam Combined"

- Key Summary: Samsung and SK Group have decided to build 90 trillion won worth of artificial intelligence (AI) data centers in the southwest region, following 800 trillion won worth of semiconductor fabs. Jun Young-hyun, vice chairman of Samsung Electronics' (005930) Device Solutions (DS) division, announced plans to invest 17 trillion won in Solaseado, Haenam, to build a national AI data center, with construction starting in the second half of this year and a 210-megawatt (MW) facility targeting its first operation in 2028. SK will also invest about 70 trillion won to build a 1-gigawatt (GW)-class data center, taking the first step in a mid- to long-term plan totaling 1,000 trillion won and 15 GW nationwide. Combining semiconductor fabs and data centers, Samsung is investing 425 trillion won and SK 470 trillion won in the southwest region.

2. "Samsung and SK: 'Yongin Semiconductors Alone Are Not Enough… Honam Is the Right Fit for a New Cluster'"

- Key Summary: Samsung and SK Group stressed that the Yongin semiconductor cluster currently under construction alone cannot meet global memory demand, and that the Honam region announced by the government is the optimal location. Vice Chairman Jun Young-hyun said the company plans to invest about 400 trillion won, starting with two semiconductor fabs in Gwangju, and that it has signed a memorandum of understanding (MOU) with the government on the investment. Meanwhile, Kwak Noh-jung, president of SK hynix (000660), said that on the premise of an explosive increase in future memory demand, the southwest region, which can provide large sites and a stable supply of power and water, meets the conditions for a new cluster. The government announced plans to provide the two companies with a 5.3 million square-meter site, up to 100% support for infrastructure costs, and to secure about 30,000 semiconductor workers.

3. "Taiwan: 'Semiconductor Competition Intensifies, We Won't Lose Our Hub Value'… China Defines It as a 'National Gamble'"

- Key Summary: Taiwan, China, and Japan have all begun to counter Korea's "three mega projects" worth 4,755 trillion won. Liu Pei-chen, a researcher at the Taiwan Institute of Economic Research, analyzed that while Korea's mega investment will stimulate Taiwan's advanced process research and development, TSMC's value as a global hub will not be shaken. Accordingly, Chinese media outlet Yicai assessed that Korea has bet its national fortune for the next 20 to 30 years on AI, and Quan Xiaoxing, a researcher at the University of International Business and Economics, defined it as a "national gamble." Japan's Nihon Keizai Shimbun predicted that because policies could change with a change of government, it is uncertain whether decade-long semiconductor factory construction plans will proceed smoothly.

4. "Physical AI Emerges Front and Center in National Strategy… Korea-Japan Contest Ignites with 'Catching China' as Goal"

- Key Summary: Korea and Japan have simultaneously signaled all-out efforts to catch up with China in the physical artificial intelligence (AI) industry. Korea selected physical AI as a top priority field in its "three mega projects," and Japan in its "17 strategic sectors," setting targets of a 20% share in humanoid robots and more than 30% in AI robots, respectively. Japan's Takaichi cabinet also plans to invest 10.5 trillion yen (about 100 trillion won) jointly between the public and private sectors in the physical AI field by 2040. Morgan Stanley has raised its forecast for China's humanoid robot shipments this year to 50,000 units from 14,000 at the start of the year.

5. "Wemade Falls into Chinese Investor's Hands… Chairman Park Kwan-ho Sells Entire Stake"

- Key Summary: Domestic game company Wemade has been sold to Chinese investment firm "Neo Pulse," which has close ties with Alibaba. Chairman Park Kwan-ho sold his entire 39.33% stake for about 920 billion won, and Neo Pulse became the largest shareholder by securing a 40.25% stake. Wemade plans to use this transaction as an opportunity to accelerate the development of new global titles based on the competitiveness of its flagship intellectual property (IP), the "Mir" series, in China. Meanwhile, Neo Pulse intends to diversify its business model by cooperating with Chinese IT companies and game publishers going forward.

6. "Ecopro BM (247540) Decides on 1.2 Trillion Won Rights Offering… Plunges 18% in Aftermarket"

- Key Summary: Ecopro BM, the cathode material producer of Ecopro (086520) Group, disclosed on the 30th that it will pursue a rights offering worth 1.2 trillion won. Of the funds raised, 915 billion won will be used to acquire a stake in an Indonesian smelter and for operating funds for its Hungarian subsidiary, with the rest to be used for domestic production facility investment and operating funds. Amid concerns over large-scale shareholder value dilution, Ecopro BM's stock fell 7.77% in the regular session, then widened its losses to 17-18% in the aftermarket, while parent company Ecopro's stock also plunged 16%. Choi Moon-ho, CEO of Ecopro BM, said the rights offering is a decision to preempt the global nickel market and enhance the competitiveness of its ternary batteries.