South Korea Commits $7 Billion to AI Chipmaking

As part of efforts to retain a leading global position in cutting-edge semiconductor chips, South Korea has announced a comprehensive investment plan amounting to $7 billion dedicated to artificial intelligence technologies by 2027. 

This ambitious drive is aimed at ensuring the country boosts a sector that remains a cornerstone of South Korea's export-driven economy. The move is seen as a response to the escalating global competition, especially against technological powerhouses such as the United States, China, and Japan, all of which are intensively investing in their semiconductor supply chains. 

Semiconductors play a pivotal role in South Korea's economy, with chip exports reaching a 21-month peak at $11.7 billion in March, accounting for nearly 20% of the nation's total exports. The government's investment aims to spearhead advancements in AI chip technologies, including artificial neural processing units (NPUs) and the next-generation high-bandwidth memory chips, positioning South Korea at the forefront of the global AI technology race.

The vision extends beyond current technological capabilities and targets the development of artificial general intelligence (AGI) and safety technologies. With an ambitious goal to capture over 10% of the global system semiconductor market by 2030, South Korea aspires to replicate its three-decade dominance in memory chips with AI chips in the coming years.

Despite the challenges posed by recent global events, such as the earthquake in Taiwan, leaders in the country have stressed that the impact on South Korean firms has been minimal, paving the way for continued technological development.