hh5800/iStock via Getty Images
South Korea plans to invest 9.4T won (about $6.94B) in AI by 2027, to maintain its position in semiconductors as countries around the world step up efforts to boost local chip manufacturing, Reuters reported.
The announcement made by South Korean President Yoon Suk Yeol also consists of a separate 1.4T won fund to support AI semiconductor companies, the report added.
By setting aside investments and a fund, South Korea intends to expand research and development in AI chips such as artificial neural processing units, or NPUs, and next-generation high-bandwidth memory, or HBM, chips, the government said, as per the report.
The country will also promote the development of next-generation artificial general intelligence, or AGI, and safety technologies which go beyond existing models.
Yoon intends South Korea to become one of the top three countries in AI technology including chips, and take a 10% or more share of the worldwide system semiconductor market by 2030, the report added.
Semiconductors are vital to the Asian nation’s export-driven economy. In March, chip exports surged to their highest in 21 months at $11.7B, or nearly a fifth of total exports shipped by the country, according to the report.
The U.S. is providing funding through its CHIPS Act, which aims to increase U.S. semiconductor manufacturing and research, especially in advanced semiconductors.
Several companies are expected to get funds under the act, with Intel (NASDAQ:INTC) already having inked a deal for about $20B in grants and potential loans,and Taiwan Semiconductor Manufacturing (NYSE:TSM) signing an agreement for up to $6.6B in grants and as much as $5B in loans. Samsung Electronics (OTCPK:SSNLF) is expected to be awarded more than $6B.
Japan is also providing subsidies to companies to boost domestic chip manufacturing.