Sarah Travers
In a bid to fortify its semiconductor industry and assert dominance in the global AI landscape, South Korea has revealed plans for a substantial $7 billion investment in artificial intelligence (AI) by 2027. President Yoon Suk Yeol’s announcement underscores the nation’s commitment to technological advancement amidst escalating international competition.
The investment initiative comprises a significant allocation of 9.4 trillion won towards AI development, complemented by a dedicated 1.4 trillion won fund to nurture emerging AI semiconductor ventures. This strategic move mirrors efforts by leading economies such as the United States, China, and Japan, all vying to strengthen their semiconductor supply chains.
Semiconductors serve as the backbone of South Korea’s export-driven economy, with chip exports reaching a 21-month high of $11.7 billion in March, accounting for nearly one-fifth of total exports. President Yoon characterizes the current semiconductor landscape as an “industrial war” among nations, highlighting the imperative of investing in AI to sustain leadership.
The government’s investment strategy aims to significantly expand research and development in AI chips, including artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips. Additionally, there will be a concerted focus on advancing next-generation artificial general intelligence (AGI) and safety technologies.
President Yoon has set ambitious targets for South Korea, envisioning the nation as one of the top three in AI technology globally and capturing a 10% or greater share of the global system semiconductor market by 2030. Drawing parallels with South Korea’s historic dominance in memory chips, Yoon expresses confidence in the country’s ability to lead with AI chips in the next three decades.
Acknowledging potential disruptions such as the recent earthquake in Taiwan, a key semiconductor hub, Yoon emphasizes the importance of comprehensive preparedness to navigate uncertainties. While noting the limited immediate impact on South Korean companies, proactive measures are essential to tackle future challenges effectively.
The announcement underscores South Korea’s unwavering commitment to technological advancement and economic resilience. As the global semiconductor landscape witnesses intensifying competition, South Korea’s substantial investment in AI signals its determination to remain at the forefront of innovation and consolidate its position as a technology powerhouse.
As South Korea prepares for a new era of technological supremacy, the investment in AI is poised to drive transformative advancements, fuel economic growth, and cement the nation’s status as a leader in global technology.
