Samsung and SK Hynix shares plummeted amid rumors of plans to invest over 2,000 billion won to combat AI.

Shares of Samsung and SK Hynix fell after South Korean media reported that the two companies are preparing to announce a 10-year investment plan totaling over 2,000 trillion won to expand their AI chip production capacity.

June 29, 2569 at 08.55:XNUMX a.m., CNBC reported that Shares of Samsung Electronics and SK Hynix fell in Monday's trading. Following reports that the two companies are preparing to announce a massive investment plan, potentially totaling over 2,000 trillion won, or approximately 1.3 trillion US dollars, over a 10-year period.

Samsung Electronics shares fell 4.7%, while SK Hynix shares declined 3.1% amid selling pressure from investors.

Korea Economic Daily newspaper reported that Samsung Electronics and SK Hynix will unveil their long-term investment plans at a government policy briefing scheduled for 2:00 PM local time in South Korea, chaired by President Lee Jae-myung, the presidential office said on Sunday.

The report is consistent with a news article from Maeil Business Newspaper last Friday, which stated that: Samsung Group is preparing to announce plans to invest 1,000 trillion won, or approximately $646,000 billion, over the next 10 years.

Samsung's investment plan will cover several key business areas, including semiconductor manufacturing plants (Fab), AI data centers, advanced packaging technology, batteries, and displays. It is estimated that around 300 trillion won will be spent on building a new factory in southwestern South Korea, 360 trillion won on a semiconductor cluster project in Yongin, and over 350 trillion won on the development of the AI ​​data center. However, the report does not specify whether there is any overlap in the investment figures.

Samsung Electronics and SK Hynix are key players benefiting from the global wave of artificial intelligence investment, as the demand for high-bandwidth memory (HBM) chips has rapidly increased, exceeding production capacity, as cloud providers and technology companies accelerate the expansion of their AI infrastructure.

SK Hynix is ​​currently the primary supplier of Nvidia's latest HBM chips, while Samsung Electronics continues to invest heavily to bridge the technological gap with its main domestic competitor and enhance its competitiveness in the rapidly growing AI chip market.

refer : www.cnbc.com

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