South Korea has unveiled plans to invest $7 billion in artificial intelligence (AI) by 2027, with a significant portion dedicated to advancing semiconductor technology. President Yoon Suk Yeol announced the initiative as part of efforts to ensure South Korea remains a global leader in cutting-edge chip manufacturing.

The investment includes a 1.4 trillion won fund specifically aimed at supporting AI semiconductor firms, reflecting the country’s determination to compete with major players like the United States, China, and Japan in bolstering semiconductor supply chains domestically.

Semiconductors play a crucial role in South Korea’s export-driven economy, with chip exports reaching a 21-month high in March. The country aims to expand its research and development in AI chips, focusing on technologies such as artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips.

President Yoon has set ambitious goals for South Korea to become one of the top three countries in AI technology, including capturing at least a 10% share of the global system semiconductor market by 2030. He emphasized the importance of AI chips in shaping the future of technology, likening the endeavor to the dominance South Korea has achieved in memory chips over the past three decades.

Despite recent challenges, such as the earthquake in Taiwan affecting semiconductor production, South Korea remains steadfast in its commitment to advancing AI technology and securing its position in the semiconductor market.