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South Korea plans US$7B investment in AI

In a bid to consolidate its leadership in semiconductor chips, South Korean President Yoon Seok Yeol on Tuesday unveiled a plan to pump 9.4 trillion won (US$6.94 billion) into artificial intelligence programmes by 2027. Semiconductors as a key foundation of South Korea’s export-driven economy The in…

Headline

Context

In a bid to consolidate its leadership in semiconductor chips, South Korean President Yoon Seok Yeol on Tuesday unveiled a plan to pump 9.4 trillion won (US$6.94 billion) into artificial intelligence programmes by 2027. The investment plan also includes a separate 1.4 trillion won fund to nurture AI semiconductor companies, aiming to support South Korea’s semiconductor industry in the face of fierce international competition.

Evidence

Pending intelligence enrichment.

Analysis

Semiconductors are a key pillar of South Korea’s export-oriented economy, with chip exports soaring to a 21-month high of $11.7 billion in March, accounting for nearly a fifth of the country’s total exports. “Current competition in semiconductors is an industrial war and an all-out war between nations,” Yoon told a meeting of policymakers and chip industry executives on Tuesday. Also read: South Korean President Yoon Suk Yeol and Japan’s Fumio Kishida set for tech cooperation roundtable South Korea plans to significantly expand research and development of artificial intelligence chips such as artificial neural processing units (NPU) and next-generation high-bandwidth memory chips through designated investments and funds, according to a government statement.

Key Points

South Korean President Yoon Suk Yeol said on Tuesday his country will invest 9.4 trillion won (US$6.94 billion) in artificial intelligence by 2027.
South Korea is trying to keep pace with countries like the United States, China, and Japan.
These countries are also providing substantial policy support to strengthen their semiconductor supply chains.
Yoon said the goal is for South Korea to be in the top three in AI technology, including chips, and to have a share of more than 10% in the global system semiconductor market by 2030.