South Korea is gearing up to invest nearly $7 billion in artificial intelligence by 2027, with the aim of establishing itself as a global leader in cutting-edge semiconductors. President Yoon Suk Yeol highlighted the importance of the semiconductor industry in South Korea’s export-driven economy, emphasizing the significance of AI in shaping the future of the industry. With Samsung and SK Hynix leading the pack in memory chip production, including high-bandwidth memory used in AI hardware, South Korea is well-positioned to make significant strides in the AI chip market.
President Yoon stressed that the future of the semiconductor industry hinges on AI, making it imperative for South Korea to invest heavily in AI and AI semiconductor technologies. The country plans to allocate 9.4 trillion won ($6.94 billion) towards these fields by 2027, in addition to setting up a 1.4 trillion won ($1 billion) fund to support the growth of innovative AI semiconductor companies. This move signals South Korea’s determination to lead the global AI chip market.
Amidst geopolitical tensions and the competition to enhance domestic chip production, countries like South Korea and Japan are stepping up to challenge Silicon Valley giant Nvidia’s dominance in the AI chip market. With Washington offering subsidies to Taiwanese giant TSMC and Japan announcing similar initiatives to revive its semiconductor industry, the race to control the future of semiconductor technologies is heating up. South Korea’s ambition to go beyond memory chips and venture into AI technology reflects the intense industrial and national competition taking place in the semiconductor market.
Semiconductors form the backbone of South Korea’s export industry, with semiconductor exports in March reaching $11.7 billion, representing a significant portion of the country’s total exports. The surge in demand for advanced chips to power AI systems has further underscored the critical role of semiconductor production in driving economic growth and technological advancement.
South Korea’s strategic investment in artificial intelligence and semiconductor technologies exemplifies its commitment to becoming a frontrunner in the highly competitive AI chip market. By channeling significant resources into AI development and fostering innovation in the semiconductor industry, South Korea is positioning itself to shape the future of AI technologies and cement its status as a global leader in the semiconductor sector.