South Korean President announced a significant investment of 9.4 trillion won ($6.94 billion) in artificial intelligence by 2027. This move aims to bolster the country's position in cutting-edge semiconductor chips and maintain its global competitiveness.
The investment plan includes a 1.4 trillion won fund dedicated to supporting AI semiconductor firms. South Korea is strategically aligning itself with other major players like the United States, China, and Japan, who are also ramping up efforts to enhance their semiconductor supply chains domestically.
Given that semiconductors are a crucial component of South Korea's export-driven economy, this investment comes at a pivotal time. In March, chip exports surged to $11.7 billion, representing nearly a fifth of the country's total exports and highlighting the sector's economic significance.
President Yoon emphasized the fierce competition in the semiconductor industry, describing it as an 'industrial war' and a battle among nations. The government's plan involves expanding research and development in AI chips, particularly focusing on artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips.
Furthermore, South Korea aims to advance the development of next-generation artificial general intelligence (AGI) and safety technologies beyond current standards. President Yoon has set ambitious goals for the country to become a top player in AI technology, including chips, and secure a significant share of the global system semiconductor market by 2030.
Yoon expressed confidence in South Korea's potential to lead the semiconductor industry with AI chips, drawing parallels to the country's dominance in memory chips over the past three decades. He envisions a new era where South Korea will shape the semiconductor landscape with innovative AI technologies.
Despite potential disruptions like the recent earthquake in Taiwan, a key semiconductor hub, South Korean companies have remained resilient. President Yoon emphasized the importance of preparedness to mitigate uncertainties and ensure the stability of the semiconductor industry.
