Did the US Ask Korea to Build Memory Chip Plants? South Korean Presidential Office Swiftly Denies: First Investment Priority is Energy, Not Chips

South Korea's presidential office, the Cheong Wa Dae, issued a text message on Tuesday (18th) to deny local media reports claiming that South Korea and the United States were discussing the inclusion of semiconductor manufacturing as the first project under a $350 billion investment commitment to the US. It also declined to disclose details of negotiations with Washington regarding the investment pledge.

Earlier, South Korea's JoongAng Ilbo, citing anonymous ruling party officials, reported that the planned announcement of South Korea's first major investment project in the US, originally scheduled for late August, had encountered complications. This was due to an 'unexpected request from Washington during a closed-door trade meeting at Cheong Wa Dae last Thursday (13th) for South Korea to invest in US memory chip fabrication plants.' Seoul had initially prioritized the energy sector as the first area for its US investment.

According to the report, officials present at the meeting generally considered the request unrealistic. Samsung Electronics and SK Hynix have already committed to investing at least $880 billion in chip and data center construction in South Korea's Honam region, and building memory plants in the US would risk diverting critical resources.

South Korea's Minister of Trade, Industry and Energy, Jin Pyung-gwan, arrived in Washington on Sunday (16th) to finalize details of the US investment plan. In an interview, he stated that several specific practical issues had emerged during negotiations, but both sides are striving to complete discussions and announce the first wave of investment projects by the end of August.

Market analysts interpret the swift denial by the South Korean presidential office as reflecting Seoul's desire to avoid being perceived as 'conveniently relocating memory wafer fabs to the US' at a time when chip giants have already heavily committed to domestic capacity. It also aims to prevent premature market speculation about further increases in capital expenditures by Samsung and SK Hynix.

The $350 billion South Korean investment pledge to the US will be a key focus of negotiations by month-end, potentially involving energy, power, AI infrastructure, or semiconductor projects. However, South Korean officials have indirectly cooled expectations that chips will be included in the first tranche of investments.