South Korea unveiled ambitious plans on Tuesday to invest $7 billion in artificial intelligence (AI) by 2027, aiming to reinforce its position as a global leader in cutting-edge semiconductor chips. President Yoon Suk Yeol disclosed the strategy, highlighting its pivotal role in sustaining South Korea’s competitive edge amid fierce international competition.
The investment package encompasses a substantial 9.4 trillion won allocation towards AI development, accompanied by a dedicated 1.4 trillion won fund to support emerging AI semiconductor firms. This initiative mirrors similar efforts by major players like the United States, China, and Japan, all racing to fortify their semiconductor supply chains.
Semiconductors form the cornerstone of South Korea’s export-oriented economy, with chip exports surging to a 21-month high of $11.7 billion in March, constituting nearly one-fifth of total exports. President Yoon characterized the current semiconductor landscape as an “industrial war” between nations, underlining the strategic imperative of investing in AI to maintain dominance.
The government’s investment plan 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 beyond existing models.
President Yoon has set ambitious targets for South Korea, envisioning the nation as one of the top three countries in AI technology 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 expressed confidence in the country’s ability to carve a similar path with AI chips over the next three decades.
Despite potential disruptions such as the recent earthquake in Taiwan, a key semiconductor hub, Yoon emphasized the importance of comprehensive preparedness to mitigate uncertainties. While acknowledging the limited immediate impact on South Korean companies, he underscored the need for proactive measures to navigate future challenges.
The announcement has garnered significant attention, signaling South Korea’s unwavering commitment to technological advancement and economic resilience. With the global semiconductor landscape poised for intensifying competition, South Korea’s substantial investment in AI underscores its determination to stay at the forefront of innovation and secure its position as a powerhouse in the semiconductor industry.
As the nation gears up for a new era of technological supremacy, the investment in AI is poised to catalyze transformative advancements, driving economic growth and reinforcing South Korea’s status as a global technology leader.
