South Korea's $7 Billion Investment in AI to Maintain Chip Technology Leadership

South Korean President Yoon Suk Yeol revealed plans on Tuesday to invest 9.4 trillion won ($6.94 billion) in artificial intelligence by 2027. This initiative aims to help South Korea maintain its leading global position in cutting-edge semiconductor chips.

In addition to this significant investment, there will also be a separate fund of 1.4 trillion won dedicated to nurturing AI semiconductor firms. This move is part of South Korea's strategy to keep pace with other countries such as the United States, China, and Japan, who are also providing strong policy support to bolster their semiconductor supply chains domestically.

Semiconductors play a crucial role in South Korea's export-oriented economy. In March, chip exports hit a 21-month high of $11.7 billion, accounting for almost 20% of total exports from the country.

During a meeting with policymakers and chip industry executives, Yoon stated that the competition in the semiconductor industry is like a fierce battle, not just between companies, but also between nations.

South Korea is planning to boost research and development in AI chips like neural processing units and high-bandwidth memory chips by allocating investments and a fund, as stated by the government.

Additionally, South Korean authorities are aiming to advance the development of next-generation artificial general intelligence (AGI) and safety technologies that surpass current models.

Yoon has a goal for South Korea to become a top three country in AI technology, including chips, and to capture at least 10% of the global system semiconductor market by 2030.

Yoon expressed confidence in achieving this goal, stating, "Just as we have led the world in memory chips for the past 30 years, we will create a new semiconductor legend with AI chips in the next 30 years."

Yoon mentioned that the recent earthquake in Taiwan, a major player in semiconductors, has had minimal effects on South Korean companies so far. However, he emphasized the importance of being well-prepared for any potential uncertainties.

Editor's P/S:

South Korea's strategic investment in AI and semiconductors is a testament to its commitment to maintaining global leadership in the tech industry. By allocating significant funds to research and development, South Korea aims to foster innovation and cultivate a robust semiconductor ecosystem. The country's ambition to capture a significant share of the global market highlights the growing importance of AI and its transformative potential across various sectors.

Furthermore, the government's recognition of the competitive nature of the semiconductor industry underscores the need for strategic planning and collaboration. South Korea's focus on advanced AI chips and next-generation technologies demonstrates a forward-looking approach to securing its future in the global tech landscape. By nurturing AI semiconductor firms and investing in groundbreaking research, South Korea is positioning itself as a hub for innovation and a key player in shaping the future of AI and semiconductor technology.