South Korea is launching a $576 billion programme to develop AI chips, which involves the construction of new factories and the development of infrastructure.
- South Korea is investing $576 billion in the production of AI chips.
- Samsung and SK Hynix are to build four new semiconductor factories.
- The government is seeking to strengthen the country’s global leadership in the field of artificial intelligence.
- New industrial clusters are to be established in the south-west of the country.
- The plan also provides for the development of data centres and AI infrastructure.
Major investments in AI and semiconductors
President of South Korea Lee Je-myung announced the launch of a large-scale government programme to develop artificial intelligence and the semiconductor industry. The total investment will exceed $576 billion, with Samsung Electronics and SK Hynix — the world’s two largest manufacturers of memory chips.
«South Korea must secure a lead in the development of artificial intelligence ahead of other countries,» said Lee Jae-myung during the official presentation.
According to him, semiconductors, physical AI and data centres will become the three main areas of the country’s technological development. Samsung Electronics and SK Hynix, together with their suppliers, are set to invest around 800 trillion won (nearly 518 billion dollars) in the construction of four new chip manufacturing plants.
New industrial clusters
The main production sites are planned to be located in the south-western part of South Korea. In addition, the government will invest tens of trillions of won in infrastructure development, as well as in the creation of a state-of-the-art semiconductor packaging centre near Seoul. The authorities explain the choice of new regions by the need to expand production capacity, as the existing clusters have almost reached their limits.
Competition in the field of artificial intelligence
HBM chips, which are manufactured Samsung and SK Hynix are critical to modern artificial intelligence systems and high-performance computing. The country’s Minister for Industry has announced that South Korea plans to double its DRAM production over the next five years to meet the rapidly growing demand for AI solutions.
There is also some criticism
Opposition politicians have criticised the programme, suggesting that the choice of location for the new plants may be politically motivated. Experts also point out that the construction of modern factories will require vast amounts of electricity, water, transport infrastructure and highly skilled workers.
