In a bid to fortify its position as a frontrunner in semiconductor chips, South Korean President Yoon Suk Yeol unveiled on Tuesday a plan to inject 9.4 trillion won ($6.94 billion) into artificial intelligence (AI) initiatives by 2027.
This move underscores the nation’s determination to compete vigorously on the global stage, amidst similar efforts by economic powerhouses such as the United States, China, and Japan, Reuters news report said.
The below chart prepared by analyst firm TrendForce indicates the advanced foundry capacity in South Korea vs other regions.
The investment package, which also includes a separate 1.4 trillion won fund aimed at nurturing AI semiconductor firms, seeks to bolster South Korea’s semiconductor industry against fierce international competition. Semiconductors constitute a crucial pillar of South Korea’s export-oriented economy, with chip exports surging to a 21-month high of $11.7 billion in March, representing nearly a fifth of the country’s total exports.
Yoon Suk Yeol emphasized the strategic importance of the semiconductor sector, characterizing the ongoing competition as both an industrial and national imperative. Addressing a gathering of policymakers and chip industry leaders, he stressed the need for concerted efforts to maintain South Korea’s competitive edge.
The government’s strategy entails significant expansions in research and development focused on AI chips, including artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips. Additionally, South Korean authorities plan to advance the development of next-generation artificial general intelligence (AGI) and safety technologies, aiming to surpass existing models.
Yoon Suk Yeol’s vision for South Korea in the AI landscape is ambitious, setting a target for the country to rank among the top three nations in AI technology, including chips, and to secure a 10 percent or greater share of the global system semiconductor market by 2030. Drawing parallels to South Korea’s dominance in memory chips over the past three decades, he expressed confidence in the nation’s ability to forge a new semiconductor legacy driven by AI innovation.
In January, 2024, South Korea revealed its plan to establish a semiconductor mega cluster in southern Seoul by 2047 by promoting a total investment of 622 trillion won (US$472 billion) with Samsung Electronics and SK Hynix.
Baburajan Kizhakedath
