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South Korea's $7 Billion Investment in AI
President's Announcement
- South Korean President Yoon Suk Yeol announced a $6.94 billion investment in artificial intelligence (AI) by 2027.
- This initiative aims to maintain South Korea's global leadership in semiconductor chips.
Importance of Semiconductors
- Semiconductors are crucial for South Korea's export-driven economy, with chip exports reaching a 21-month high in March.
- The country faces competition from the US, China, and Japan, which are also bolstering their semiconductor supply chains.
Focus Areas of Investment
- The investment includes a $1.4 trillion fund to support AI semiconductor firms.
- South Korea plans to expand research and development in AI chips, including neural processing units and high-bandwidth memory chips.
Goals and Targets
- President Yoon aims for South Korea to be a top-three country in AI technology, capturing over 10% of the global system semiconductor market by 2030.
- The country aims to dominate the AI chip market similarly to its past success with memory chips.
Preparedness for Uncertainties
- Despite the recent earthquake in Taiwan, a semiconductor hub, South Korean companies have experienced limited impact.
- President Yoon emphasized the need for thorough preparation for potential uncertainties in the future.
Source: Reuters
