President Lee Jae Myung Meets Samsung Chairman Lee Jae-yong to Discuss Regional Chip Investments

President Lee Jae Myung met with Samsung Electronics Co. Chairman Lee Jae-yong on Thursday to discuss plans for regional semiconductor investments, including the possible development of a chip cluster in the southwestern Honam region.

During the meeting, which lasted more than an hour at Cheong Wa Dae, the two exchanged opinions on Samsung Electronics Co.'s potential large-scale investment projects in provincial areas that are expected to be unveiled soon, according to sources.

The talks are widely viewed as part of the ongoing preparations for the government's upcoming conference on balanced regional development, tentatively scheduled for next Monday. The president had earlier met with the head of SK hynix to exchange views on regional investments.

Earlier, Kim Yong-beom, the presidential chief of staff for policy, said the greater Seoul area is facing growing constraints on land, electricity and water resources, suggesting the government may seek to establish an additional semiconductor cluster outside the capital region.

A semiconductor cluster is currently under construction in Yongin, just south of Seoul, and is expected to serve as a key production hub for advanced semiconductor products manufactured by the two chipmakers.

The Lee administration has promoted balanced regional development as a key economic policy, aiming to foster new growth engines across eight regions under its "five poles and three special zones" initiative.

As part of such efforts, the government is pursuing the creation of a southern semiconductor belt.

Earlier this week, Lee Jae-yong visited Samsung's high-bandwidth memory (HBM) production facilities and emphasized efforts to strengthen the company's technological leadership in the rapidly growing artificial intelligence (AI) semiconductor market.

The visit came as Samsung's cumulative sales of sixth-generation HBM chips, known as HBM4, surpassed US$1 billion.

The milestone was reached just four months after the company became the first in the world to begin mass production and shipments of HBM4 chips in February.

Industry observers expect Samsung and SK hynix to invest hundreds of trillions of won in the Honam and Chungcheong regions to establish a comprehensive semiconductor ecosystem, as well as renewable energy infrastructure to support AI industries.

Expansion of existing semiconductor production facilities in the Chungcheong Province is also being discussed.

Samsung Electronics, meanwhile, maintained its position as the world's largest supplier of dynamic random-access memory (DRAM) chips in the first quarter, according to market research firm Counterpoint Research.