The ambitious plan aims to secure South Korea’s place among the global leaders in AI and semiconductor technology by 2030.
SEOUL: South Korea has announced plans to invest 9.4 trillion won (US$6.94 billion) in artificial intelligence (AI) by 2027, as part of a broader strategy to maintain its dominance in the global semiconductor market. President Yoon Suk Yeol revealed the initiative on Tuesday, highlighting the critical role semiconductors play in the country’s export-driven economy.
The plan includes a dedicated 1.4 trillion won fund to support AI semiconductor firms, aiming to keep South Korea competitive with global powerhouses like the United States, China, and Japan, which are also ramping up investments in semiconductor supply chains.
Semiconductors: The Economic Backbone
In March 2024, South Korea’s chip exports surged to US$11.7 billion, the highest in 21 months, accounting for nearly 20% of the nation’s total exports. Recognizing this sector’s pivotal role, Yoon described the semiconductor industry as an “industrial war and an all-out war between nations.”
The government plans to channel its investments into developing cutting-edge AI chips, such as neural processing units (NPUs) and high-bandwidth memory chips. Additionally, it aims to advance next-generation artificial general intelligence (AGI) and safety technologies, going beyond current AI models.
Aiming for Global Leadership
Yoon has set a bold target for South Korea to rank among the top three nations in AI technology and to capture more than 10% of the global system semiconductor market by 2030.
“Just as we have led the world in memory chips for the past 30 years, we will pioneer a new era of AI semiconductors in the next 30 years,” Yoon declared during a meeting with policymakers and industry leaders.
Preparing for Global Challenges
Yoon also addressed potential risks, noting that the recent earthquake in Taiwan—a critical player in the semiconductor industry—had limited immediate effects on South Korean companies. However, he emphasized the need for contingency planning to mitigate uncertainties in the global semiconductor supply chain.
With this significant investment, South Korea is poised to strengthen its position as a global leader in AI and semiconductor innovation, ensuring its continued relevance in an increasingly competitive industry.
