South Korea to invest $7bn in artificial intelligence by 2027

The President of South Korea Yoon Suk Yeol announced plans to invest about $7bn in the development of artificial intelligence technologies and the production of advanced semiconductors by 2027 to strengthen the country's position as a world leader in this field.

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South Korea is home to tech giants such as Samsung and SK Hynix, the world's leading manufacturers of memory chips, including the high-speed memory needed for AI systems.

The semiconductor industry plays a key role in South Korea's export-oriented economy. President Yoon has stated that his administration aims for the country to become a global leader in AI chip manufacturing.

As part of this strategy, the government will invest 9.4 trillion won ($6.94 billion) in the development of AI and AI semiconductors until 2027. It will also set up a separate 1.4 trillion won ($1 billion) fund to support innovative companies in this field.

Driven by geopolitical concerns over Taiwan and US-China competition, South Korea, Japan and the West are seeking to boost domestic chip production through heavy investment and subsidies. NVIDIA currently dominates the AI chip market.

According to Yun, the "semiconductor competition" now resembles an "industrial and all-out war between countries." Earlier, Washington and Tokyo also announced large subsidies for chip manufacturing.

Source: TechXplore