South Korean conglomerate Samsung has announced a landmark plan to invest US$310 billion over the next five years, with a primary focus on artificial intelligence and related technologies. The massive investment aims to solidify the company’s leadership position and meet the rapidly growing global demand for AI infrastructure.
Strategic Investment in Semiconductor Leadership
A significant portion of the investment is earmarked for enhancing Samsung’s semiconductor capabilities. The plan includes the construction of a new facility, Pyeongtaek Plant 5, which is designed specifically to address the increasing demand for advanced memory chips crucial for AI computing.
The new plant is scheduled to begin operations in 2028 and is expected to play a pivotal role in the global semiconductor supply chain and strengthen South Korea’s domestic chip ecosystem.
Expanding AI Data Center Infrastructure
Through its IT and logistics arm, Samsung SDS, the company will establish two new AI data centers. These facilities, located in South Jeolla and Gumi, will further bolster the infrastructure required to power advanced AI applications and services, catering to the explosive growth in data processing needs.
The MENA Angle
Samsung’s multi-billion dollar investment in the global AI supply chain has significant implications for the MENA region’s burgeoning tech ecosystem. As countries like the UAE and Saudi Arabia aggressively push national AI strategies and invest heavily in digital transformation, their success becomes increasingly dependent on access to state-of-the-art hardware.
This move by a key global supplier promises to increase the availability of high-performance memory chips and components essential for building and scaling regional data centers and AI-powered startups. For MENA’s founders and VCs, a more robust global supply chain could translate into better access to critical infrastructure, potentially lowering barriers to entry for computationally intensive AI ventures.
Beyond AI: Diversifying into Next-Gen Batteries
While AI is the central theme, the investment package also includes projects in other strategic areas. Samsung SDI, the group’s electric vehicle battery affiliate, is exploring the development of a domestic production line for next-generation batteries, including innovative all-solid-state batteries, signaling a continued push into future mobility solutions.
About Samsung
Samsung is a South Korean multinational manufacturing conglomerate headquartered in Samsung Town, Seoul. It comprises numerous affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean business conglomerate. Samsung Electronics is one of the world’s largest manufacturers of electronic devices and a key player in the global memory chip market.
Source: Tech in Asia
