Samsung and SK hynix are slowing down investments in South Korea after huge pledges to the USA

Samsung and SK hynix concentrating on US-based operations might push back South Korea construction schedules, with billions of dollars at stake.

2 minutes & 23 seconds read time

Samsung and SK hynix are reportedly reconsidering the construction of domestic semiconductor plants in South Korea after promising tens of billions of dollars into their operations in the United States.

Samsung and SK hynix are slowing down investments in South Korea after huge pledges to the USA 305

The US government has been shoveling billions of dollars to semiconductor companies, including TSMC, Samsung, SK hynix, Intel, NVIDIA, and others through its CHIPS Act. Now, South Korean companies are slowing down with domestic semiconductor operations.

Korea JoongAng Daily reports that Samsung is "reorganizing its investment plan from last year" and that "speed control should be inevitable".

Samsung has recently increased its investments to $44 billion from $17 billion for its new Taylor, Texas-based fab plants, which will see new manufacturing plants, advanced packaging facilities, and new R&D facilities from Samsung in Texas, USA. SK hynix recently announced $3.9 billion of investments for HBM memory chip manufacturing facilities in West Lafayette, Indiana. Still, SK hynix is expected to pump more money into its US operations through on-going talks with the US government and subsidies through the CHIPS Act.

Samsung and SK hynix are involved with a South Korean government-led cluster project planned for Yongin, Gyeonggi, which will operate in 2027. Samsung has pledged an incredible 360 trillion won (around $266 billion USD), while SK hynix has pledged 120 trillion won (around $88 billion USD) towards the project.

One of the sources that Korea JoongAng Daily talked to said: "The chip industry is often called an art of timing because when to invest is so important with the industry upturn and downturn continuously repeating. Tens of trillions of won are at stake for that one investment decision, so companies don't have to strictly follow the preset schedule".

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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