A close-up of the Samsung logo at a research building in Silicon Valley, Mountain View, California, October 28, 2018.
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shares of samsung electronics and SK Hynix Shares plunged on Monday after reports surfaced that the two companies would announce investment plans worth more than $1 trillion.
Samsung Electronics’ stock price fell 4.7%, and SK Hynix’s stock fell 3.1%.
Samsung Electronics and SK Hynix will announce large-scale investment plans worth up to 2,000 trillion won ($1.3 trillion) over the next 10 years, the Korea Economic Newspaper reported.
The investment plan will be announced at a government briefing session on Monday at 2pm local time. The Blue House announced on Sunday that President Lee Jae-myung will chair the meeting.
The announcement came after the Mainichi Keizai Shimbun on Friday reported that Samsung Group will announce a 1,000 trillion won ($646 billion) investment plan over the next 10 years.
According to the daily report, Samsung’s 10-year investment blueprint spans semiconductor factories, AI data centers, advanced packaging, batteries, and displays, and includes approximately 300 trillion won for a new factory in southwest Korea, 360 trillion won for the Yongin semiconductor cluster, and more than 350 trillion won for an AI data center. The report does not say whether these numbers overlap.
Samsung Electronics and SK Hynix have emerged as central players in the artificial intelligence boom, with demand for high-bandwidth memory chips outpacing supply as cloud providers and technology companies race to expand AI infrastructure.
SK Hynix is a major supplier of advanced HBM chips to NVIDIA, while Samsung is investing heavily to close the technology gap with domestic rivals.
