South Korea, known for its thriving semiconductor industry, is ramping up its investment in artificial intelligence (AI) with a $7 billion plan to boost its position in the global market. President Yoon Suk Yeol announced the country’s intention to invest 9.4 trillion won ($6.94 billion) in AI by 2027, with an additional 1.4 trillion won fund dedicated to fostering AI semiconductor firms.
The move comes as South Korea faces competition from other major players such as the United States, China, and Japan, who are also making significant investments to strengthen their semiconductor supply chains. Semiconductors are a crucial component of South Korea’s export-driven economy, with chip exports reaching a 21-month high of $11.7 billion in March, accounting for almost a fifth of the country’s total exports.
President Yoon emphasized the fierce competition in the semiconductor industry, describing it as an industrial and all-out war between nations. “Just as we have dominated the world with memory chips for the past 30 years, we will write a new semiconductor myth with AI chips in the next 30 years,” he declared. South Korea aims to become one of the top three countries in AI technology, including chips, and capture a 10% or more share of the global system semiconductor market by 2030.
To achieve this ambitious goal, South Korea plans to expand research and development in AI chips, such as artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips. The government also intends to promote the development of next-generation artificial general intelligence (AGI) and safety technologies that surpass existing models.
South Korea’s investment in AI reflects its determination to remain at the forefront of technological advancements. By focusing on AI, the country aims to leverage its strong foundation in the semiconductor industry and solidify its position in the global market.
Despite the recent earthquake in Taiwan, a major semiconductor player, President Yoon assured that the impact on South Korean companies has been limited thus far. However, he ordered thorough preparation in case of future uncertainties. This highlights the potential vulnerability of the semiconductor industry and the importance of diversifying supply chains to mitigate risks.
With this substantial investment in AI, South Korea is positioning itself for future success in the rapidly evolving world of technology. President Yoon’s vision for the next 30 years encompasses not only dominating the memory chip market but also spearheading advancements in AI chips. By combining its expertise in semiconductors with cutting-edge AI technologies, South Korea aims to create a new semiconductor myth that will shape the future of the industry.
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