The tech-savvy country wants to retain its edge in semiconductor chips
09 April 2024 - 11:05
by Joyce Lee
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
People watch South Korean President Yoon Suk-yeol's speech on TV in Seoul, South Korea, on April 1 2024. Picture: REUTERS/KIM HONG-JI
Seoul — South Korean President Yoon Suk Yeol said on Tuesday his country will invest 9.4-trillion won ($6.94bn) in artificial intelligence (AI) by 2027 as part of efforts to retain a leading global position in cutting-edge semiconductor chips.
The announcement, which also includes a separate 1.4-trillion won fund to foster AI semiconductor firms, comes as South Korea tries to keep abreast with countries like the US, China and Japan that are also giving massive policy support to strengthen semiconductor supply chains on their own turf.
Semiconductors are a key foundation of South Korea’s export-driven economy.
In March, chip exports reached their highest in 21 months at $11.7bn, or nearly a fifth of total exports shipped by Asia’s fourth-largest economy.
“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.
By earmarking investments and a fund, South Korea plans to significantly expand research and development in AI chips such as artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips, the government said in a statement.
South Korean authorities will also promote the development of next-generation artificial general intelligence (AGI) and safety technologies that go beyond existing models.
Yoon has set a target for South Korea to become one of the top three countries in AI technology including chips, and take a 10% or more share of the global system semiconductor market by 2030.
“Just as we have dominated the world with memory chips for the past 30 years, we will write a new semiconductor myth with AI chips in the next 30 years,” Yoon said.
Yoon also noted that the impact of the recent earthquake in Taiwan, a global leader in semiconductors, on South Korean companies was limited as of now, but ordered thorough preparation in the event of uncertainties.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
South Korea to invest almost $7bn in AI
The tech-savvy country wants to retain its edge in semiconductor chips
Seoul — South Korean President Yoon Suk Yeol said on Tuesday his country will invest 9.4-trillion won ($6.94bn) in artificial intelligence (AI) by 2027 as part of efforts to retain a leading global position in cutting-edge semiconductor chips.
The announcement, which also includes a separate 1.4-trillion won fund to foster AI semiconductor firms, comes as South Korea tries to keep abreast with countries like the US, China and Japan that are also giving massive policy support to strengthen semiconductor supply chains on their own turf.
Semiconductors are a key foundation of South Korea’s export-driven economy.
In March, chip exports reached their highest in 21 months at $11.7bn, or nearly a fifth of total exports shipped by Asia’s fourth-largest economy.
“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.
By earmarking investments and a fund, South Korea plans to significantly expand research and development in AI chips such as artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips, the government said in a statement.
South Korean authorities will also promote the development of next-generation artificial general intelligence (AGI) and safety technologies that go beyond existing models.
Yoon has set a target for South Korea to become one of the top three countries in AI technology including chips, and take a 10% or more share of the global system semiconductor market by 2030.
“Just as we have dominated the world with memory chips for the past 30 years, we will write a new semiconductor myth with AI chips in the next 30 years,” Yoon said.
Yoon also noted that the impact of the recent earthquake in Taiwan, a global leader in semiconductors, on South Korean companies was limited as of now, but ordered thorough preparation in the event of uncertainties.
Reuters
TSMC to make advanced semiconductors in US
Samsung expects tenfold jump in quarterly profit
Intel shares fall on news of operational loss
China calls time on US microprocessors
US officials face tough choices for subsidising AI chip making
European automakers battle to undercut cheap Chinese imports
SMIC blames weak demand for profit plunge
Record chip orders for ASML but outlook for 2024 remains same
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Hyundai and Kia to partner with India’s Exide Energy on EV batteries
Samsung expects tenfold jump in quarterly profit
Why South Korea’s high-stakes election matters
South Korea’s Yoon Suk-yeol yields on plan for doctors as strike goes on
Korea’s Kia woos Thailand over new EV facility, sources say
TSMC to make advanced semiconductors in US
US officials face tough choices for subsidising AI chip making
Mustek puts faith in AI as interim earnings falter
Q&A: Samsung to offer trade-ins for TVs in SA
Mark Zuckerberg in South Korea for talks with LG Electronics top brass
Samsung sees devices demand recovering
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.