South Korean President Yoon Suk Yeol has announced a significant investment of 9.4 trillion won, approximately $6.94 billion, in artificial intelligence by 2027. This investment aims to help South Korea maintain its leading global position in cutting-edge semiconductor chips. In addition to this investment, a separate fund of 1.4 trillion won will be used to support and foster AI semiconductor firms. This move comes as South Korea seeks to keep up with other countries like the United States, China, and Japan, which are also providing substantial policy support to strengthen their semiconductor supply chains.
Semiconductors are a crucial foundation of South Korea’s export-driven economy. In March, chip exports reached their highest level in 21 months at $11.7 billion, accounting for nearly a fifth of the total exports from Asia’s fourth-largest economy. During a meeting with policymakers and chip industry executives, Yoon described the current competition in semiconductors as an industrial and all-out war between nations. By allocating investments and funds, South Korea plans to significantly enhance research and development in AI chips, focusing on artificial neural processing units and next-generation high-bandwidth memory chips.
In addition to expanding research and development in AI chips, South Korean authorities also aim to promote the development of next-generation artificial general intelligence and safety technologies that surpass existing models. Yoon has set a target for South Korea to become one of the top three countries in AI technology, including chips, and to capture a 10% or higher share of the global system semiconductor market by 2030. Yoon emphasized the country’s ambition to establish a new semiconductor legend with AI chips over the next three decades, following the domination of the world with memory chips for the past 30 years.
Yoon also addressed the potential impact of the recent earthquake in Taiwan, a global leader in semiconductors, on South Korean companies. While the impact on South Korean companies was limited at the time, Yoon stressed the importance of thorough preparation for any uncertainties that may arise. Overall, the investment and initiatives announced by President Yoon reflect South Korea’s commitment to advancing its semiconductor and AI industries to maintain a competitive edge in the global market. Through strategic investments and support for AI semiconductor firms, South Korea aims to solidify its position as a key player in the evolving landscape of AI technology and semiconductor innovation.
