"Entering The Mega Investment Era": JPM Breaks Down South Korea's Plan To Double Memory-Chip Production
Any hope that the memory-chip shortage would ease this year was upended Monday morning, as South Korea's two memory giants, Samsung and SK Hynix, prepare a massive capacity expansion that will unfold over the next five years rather than provide near-term relief. That means the supply squeeze rippling through consumer electronics, from Apple MacBooks to Microsoft Xbox consoles, is likely to keep driving prices higher for the foreseeable future.
The Korea Economic Daily reports that South Korea plans to steer at least 1,350 trillion won, or about $880 billion, of private investments into expanding semiconductor manufacturing and AI data centers.
Samsung and SK Hynix plan to build four chipmaking plants in the country's southwest at a combined cost of 800 trillion won, while companies including Naver will invest another 550 trillion won to develop 8.4 gigawatts of AI data-center capacity by 2029.
"We're entering an era where the page turns in the blink of an eye," President Lee Jae Myung said, adding the country must accelerate faster than rivals, calling speed "the only way to survive" in the AI era.
South Korea's industry ministry wrote in a statement that the move aims to double the country's memory chip production capacity within five years and to secure its lead in chip production amid competition from China and Taiwan.
The memory crunch worsened last week when Apple and Xbox were forced to raise prices on MacBooks and gaming consoles. Then, a weekend story reported that Apple plans to tap China for memory, given the shortage that will persist through this year and next as AI demand soaks up memory supply.
Samsung shares fell nearly 5% Monday, while SK Hynix declined 1.7%.
JPMorgan analyst Jay Kwon provided clients with a first take on news from South Korea, calling the country's AI investment push the start of the "Mega Investment Era" and a move to strengthen its lead in memory chips, data centers, and physical AI.
The plan centers on three growth pillars: semiconductors, AI robotics and physical AI, and AI data centers, Kwon noted.
Here's more color:
Entering the Mega Investment Era. The Korean government (Presidential office and multiple cabinet members) and major AI ecosystem C-level executives (incl. Samsung/SK group chairmen) attended a national briefing today and shared the long-term AI mega project vision.
The Ministry of Trade, Industry and Resources ("MOTIR") announced the "Three Mega Project Plans" establishing 1) semiconductors; 2) AI robotics and physical AI; and 3) AI datacenters as the three major growth pillars (link). The genesis of the investment stems from retaining the current AI leadership (especially in AI semiconductors) and leapfrogging as an AI export country through nurturing and developing various AI-derivative businesses including robotics and AI datacenters. Within the semiconductor business, MOTIR highlighted 3S (Speed + Stronghold + Spearhead) + 1F (Full Support) as growth strategies: 1) Speed: MOTIR expects memory capacity to double in the next five years and pull-forward the advanced Yongyin fab ramp timeline by 7-12 years (From 2045-2047 to 2033-2040); 2) Stronghold: W800T investment in the Southeast region (four fabs in total) and W81T HBM backend fab investment in the Chungcheong region; 3) Spearhead: W30T investment over the next 15 years in R&D and labor to support the pathway from R&D to full production; and lastly 4) Full Support from the government backed by MOTIR. Other investments include fostering Robotics as the next growth engine and W550T investment in AI DC split between two phases (1st phase: 8.4GW and 2nd phase: W10GW investment by 2035).
Samsung Group: W2,655T investment of which W2,100T in semiconductors. Samsung Group announced a W2,655T investment in Korea (link) and SEC announced a W2,450T investment throughout 2026-2040 (W2,100T investment in semiconductors) (link). Combining the two investment announcements, SEC is expected to invest: 1) W1,650T in Yong-in fab cluster and existing semiconductor fabs; 2) W400T in Gwangju potentially as a new manfuacturing hub; 3) W56T in HBM backend packaging line in Cheonan/Onyang; 4) W67T in next-gen display and micro display in Asan; and 5) <W60trn in physcial AI and humanoid mass production line in Gumi. Within the Samsung group, other investment includes: SEMCO (Substrate packaging fab in Sejong and MLCC/substrate fab in Busan); Samsung SDS (AI DC buildout in Haenam and Gumi); Samsung C&T (Green energy, power facilit
SK Group: W2,100T investment (W1,100T in memory and W1,000T in AI infrastructure). SK Group explained the role of the datacenter is transistioning from storage to token generation and emphasized AI factory as the next growth engine of the group (link). The SK Group announced to invest W1,000T in AI infrastructure equating to 15GW by 2035 split between two phases (1st phase of 5GW ramp split between a mix of 0.5GW/1GW projects and an additional 10GW ramp by 2035). SK Group also announced that it will invest W1,100T in memory split between W600T in Yongin (pulling forward the ramp time from 2045 to 2033), W100T in NAND in Cheongju, and W400T for the next semiconductor cluster, potentially in the Southeast region.
JPM view: W4,755T (or US$3.1T) includes more than a dozen of~400k WSPM fab investments on a scale which is 2x that of the current installed DRAM WSPM capacity, implying the pace of building 1mn additional DRAM capacity (from 1H16- 1H26) will be multiple times faster than in the past after the tipping point in late2020s. Within the US$3.1T long-term investment plan, we estimate 60-70% to be allocated to front-end wafer equipment spending, 20-30% for infrastructure and cleanroom construction, and the rest for back-end packaging facilities. We expect to hear more details on specific timelines for investment (fab and investment plan in multiple stages and timeline) in the upcoming result season and follow-up corporate events
Investment Details:
The planned spending underscores South Korea's preparation for physical AI, but also shows that any immediate relief for memory chips won't happen anytime soon.
Badenoch blasts 'moaning' female Labour MPs over Burnham jobs 'quota'
Kemi Badenoch has told Labour women to earn a job in Andy Burnham's Cabinet instead of demanding they are handed jobs because of their gender.
The Tory leader lashed out today amid reports that female MPs are demanding the de-facto new prime minister introduce a 50:50 gender split 'quota' in his government.
Amid reports that former foreign secretary David Miliband is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister also complained that Burnham could not have 'more Milibands than women' in the top posts.
But in a scathing article in the Times today Mrs Badenoch told them to 'stop moaning' and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'.
'There are many, many reasons why you shouldn't have any Milibands in the cabinet,' she said.
'But complaining that the boys haven't given them the right jobs or that the boys are taking all the jobs, just shows that Labour's women still don't get it.'
The idea of quotas was also attacked by Baroness Jacqui Smith, Labour's Skills Minister.
Asked by Times Radio if Mr Burnham should reserve jobs for women, she said: 'No, I think what Andy Burnham should be doing is building the very best team around him to change this country.'
A letter written by the Women's Parliamentary Labour Party has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs
Amid reports that former foreign secretary David Miliband (above, right, in 2010) is being lined up to return to the role, possibly with his brother Ed as Chancellor, one female minister complained that Burnham could not have 'more Milibands than women' in the top posts
But Mrs Badenoch told them to pipe down and get chosen on merit instead of retreating into 'more of the failed identity politics that is holding back our country'
A letter written by the Women's Parliamentary Labour Party and seen by the BBC has called on Mr Burnham to ensure a 50:50 split between men and women in government jobs after he succeeds Sir Keir Starmer.
'We are asking you to demonstrate this change from day one and address the toxicity and misogyny within our own party and government,' it said.
Labour has never had a female leader, while the Conservatives have had three, and Mrs Badenoch urged the government to follow its meritocratic example.
'If you run a meritocracy, then you do not have to worry about jobs for the boys,' she wrote.
'Every woman who is a Conservative MP, every woman who has ever won the leadership, has had to fight to get where she is.
'By contrast, Labour women are demanding guarantees from Burnham. But the truth is he doesn't have to give any guarantees.
'If none of Labour's women are prepared to get their hands dirty and challenge him for the leadership, their demands are toothless.'
'In fact, it's quite revealing that the women's parliamentary Labour Party has written to Burnham asking him to commit himself to at least 50 per cent female ministers.
'This has nothing to do with meritocracy. It is yet more of the failed identity politics that is holding back our country.'
Venezuela Fury and Noah Price subsidising their life by livestreaming
Venezuela Fury and her husband Noah Price look to be making their own way in the world by raking it in from their lucrative social media accounts.
The influencer daughter of Tyson and Paris Fury, 16, has become an internet sensation after tying the knot with her husband Noah, 19, earlier this year.
Since getting married and moving in together the couple have been earning thousands of pounds a month, livestreaming their life as newlyweds in their static caravan in the East Riding of Yorkshire.
And fans can't get enough of their regular life updates on TikTok and Kick, which have proved to be very profitable for the pair.
They look to be supporting themselves after Noah denied that he was given £5million by Venezuela's family as a wedding gift.
Despite his wife's huge family wealth, an estimated combined £160 million, Noah recently told his Kick followers that he 'pays for everything' for the couple.
Making light of the claims about Venezuela's millionaire financial status, Noah said: 'I actually pay for everything unfortunately. You'd expect the millionaire to pay for it wouldn't you.'
Venezuela Fury and Noah Price are earning thousands livestreaming their caravan life - after her new groom insisted he pays all the bills and denied he had £5m handout from her dad
The influencer daughter of Tyson and Paris Fury , 16, has become an internet sensation after tying the knot with her husband Noah, 19, earlier this year
Venezuela then asked their fans: 'Do you think I am a millionaire?'
Noah joked: 'She isn't a secret millionaire guys', before she broke into song and sang: 'But I live like a millionaire!'
But it seems according to estimated calculations from their social media work, Noah and Venezuela can more than afford to support themselves.
Noah has been livestreaming on platforms such as Kick and TikTok, where viewers can send paid gifts or donations.
He was previously encouraging viewers to send gifts on his honeymoon during livestreams, suggesting this is one revenue stream.
Both Noah and Venezuela have built substantial followings on Instagram and TikTok. They can potentially earn money through sponsored posts, brand collaborations, affiliate links and creator payouts.
Kick allows its creators to take home 95 per cent of the £4.99 subscription cost that fans pay.
Streamers keep 100 per cent of direct tips and donations, minus minor standard payment processing fees.
It is unclear how many subscribers Noah currently has because this information is hidden, but he does have 7,200 followers which is publicly viewable.
An industry insider has suggested Noah is making around £400 per video on TikTok, while Venezuela is likely to make £2,000 due to her following count of 1.3 million.
An industry insider has suggested Noah is making around £400 per video on TikTok, while Venezuela is likely to make £2,000 due to her following count of 1.3 million
In one video on their honeymoon, Noah asked his followers if they'd give them some more gifts now that they were married.
In a TikTok live viewed by 20,000 he said: 'Keep liking our videos people, keep sending gifts.'
After saying thank you to several of his followers he joked they should stick around on the livestream and 'watch Venezuela punch me in the mouth'.
The other half of the honeymooning couple said: 'I am, honestly!'
Noah previously confirmed that the pair don't share their finances after they were asked whether they have a shared bank account.
'She earns her money, I earn mine,' said Noah, as Venezuela joked: 'Yeah, what you gonna do about it.'
Noah went on to debunk the rumour that Tyson gave him £5million when he tied the knot with his daughter as he insisted: 'No Tyson did not give me £5million'.
Meanwhile Venezuela is being eyed up by executives for a fly on the wall TV series.
Noah went on to debunk the rumour that Tyson gave him £5million when he tied the knot with his daughter as he insisted: 'No Tyson did not give me £5million'
Boasting 1.3 million TikTok followers, Venezuela is already entertaining fans with her honest musings and candid moments, from cooking to kitting out her and Noah's static caravan home.
And following the success of the Netflix series At Home With The Furys, it is no wonder bosses are wanting to draw on the Fury popularity.
A TV insider said: 'The couple are not A-list celebrities but everyone has become obsessed with their love story.
'People are genuinely intrigued by them. Whether it’s the fact they have married so young, Venezuela’s famous family or their gypsy lifestyle, they have the ‘X factor'.
'Several TV executives think a proper fly-on-the-wall series following their lives as newlyweds in the gypsy community would be fascinating,' they told The Sun.
It is thought Netflix would be likely to produce the series due to their already established relationship with the Furys.
Venezuela's representatives told The Daily Mail: 'We have many offers on the table regarding Venezuela which we are discussing.'
