The South Korean government has announced that in order to maintain its leading position in the global semiconductor market, it will invest 9.4 trillion Korean won (6.94 billion US dollars) in the field of artificial intelligence over the next three years, with the goal of becoming one of the top three countries in artificial intelligence technology.
South Korean President Yoon Seok yeol attended a meeting yesterday attended by senior executives from companies such as Samsung Electronics, SK Hynix, Naver, Sapeon, and officials from finance, industry, science, environment, and land departments. He stated, “Not only in hardware fields such as chips and digital devices, but also in digital fields such as artificial intelligence models and their use, South Korea has gained global competitiveness.”
Yin Xiyue added, “There are not many countries that can both manufacture hardware and develop and use software. We will promote the artificial intelligence chip program, allowing South Korea to enter the G3 stage of artificial intelligence technology, surpass storage chips, and conquer the future artificial intelligence chip market.”AI Chips
As part of the announcement, the government has stated that it will also establish a 1.4 trillion Korean won fund to assist domestic artificial intelligence chip manufacturers in their development.
Yin Xiyue said at the meeting that day, “The competition in the semiconductor industry is an industrial war, a comprehensive war between countries.”
With the policies of the United States, China, and Japan to strengthen their domestic semiconductor supply chains, South Korea is facing increasing pressure to keep up with the trend of artificial intelligence.
On Monday, the US government granted TSMC’s US subsidiary $6.6 billion in subsidies for advanced semiconductor production in Phoenix, Arizona, as well as up to $5 billion in low-cost government loans.
This subsidy comes from $54 billion in funding from the Chip and Science Act, aimed at supporting the domestic chip manufacturing industry in the United States.
TSMC has agreed to expand its planned investment in the United States to $65 billion and add a third factory in Arizona by 2030. According to data from the US Department of Commerce, this investment is the largest foreign direct investment in a completely new project in US history.
Under the condition of full load operation, TSMC’s three wafer factories in Arizona will produce tens of millions of cutting-edge chips to power 5G/6G smart phones, autonomous vehicle, AI data center servers and other products.
TSMC is expected to begin mass production at its first US wafer fab in the first half of 2025. This Taiwanese company is producing what is said to be the world’s most advanced 2-nanometer technology at its second wafer factory in Arizona, and is expected to start production in 2028.
At the same time, he reiterated his plan to start building a chip industry park with an investment of 622 trillion Korean won (458.24 billion US dollars) in Longren, 42 kilometers southeast of Seoul, in 2026.
Yin Xiyue said, “The government will also provide the electricity and industrial water needed to build a large-scale chip cluster in the southern part of Gyeonggi.”