South Korea unveils massive tech projects

South Korea unveiled on Monday a massive plan totaling nearly 5 quadrillion won ($3.25 trillion) to strengthen the country's leadership in the era of artificial intelligence.

The investment, to be undertaken by both the government and private industry, is envisaged as part of "tripolar mega projects" aimed at advancing semiconductor manufacturing, physical AI or robotics, and AI data centers. Besides the government, it involves investment from Samsung Electronics Co and SK Hynix, the country's two largest chipmakers, as well as other private companies.

"Semiconductors, physical AI, and AI data centers form the crucial triple axis for our next great leap," President Lee Jae-myung said in a televised national investment briefing while stressing the need to fully engage the public and private sectors to build South Korea's AI ecosystem.

Lee said a dedicated presidential aide within the Blue House, or Cheong Wa Dae — the presidential office — will be appointed to oversee the three projects directly. Lee will also oversee the projects personally to ensure prompt implementation.

According to South Korean Minister of Trade, Industry and Resources Kim Jung-kwan, the government plans to develop a major new semiconductor cluster in the country's southwestern region, with corporate investments totaling 800 trillion won.

The government will also invest 30 trillion won over the next 15 years to support the full semiconductor value chain, aiming to double dynamic random access memory production capacity within five years, Kim said.

Science Minister Bae Kyung-hoon said the country will invest a quadrillion won in AI data centers by 2035.

"The next three years will be the golden time to become the top in the area of physical AI," he said, noting that his ministry plans to develop a foundational model for physical AI in the next three years once the data infrastructure is in place.

In line with the government's plan, Samsung Electronics Chairman Lee Jae-yong said the company will invest over 2.6 quadrillion won nationwide, spread across industries including semiconductors, humanoid robotics, batteries, and other related components and materials.

SK Group Chairman Chey Taewon said the group's subsidiary SK Hynix will invest 1.1 quadrillion won to build new semiconductor clusters to address the supply shortage in semiconductors. The group also plans to invest a quadrillion won to build AI data centers across the country with a total capacity of 15 gigawatts.

Core infrastructure

"South Korea is trying to redefine semiconductors not merely as an export product, but as the core infrastructure of the AI era," Lee Young-chan, a professor of information management at Dongguk University in South Korea, told China Daily.

The focus on integrated development of semiconductors, physical AI and AI data centers will allow South Korea to move beyond being a major chip producer and develop into a "platform country" for AI-driven manufacturing innovation and industrial intelligence, said Lee Young-chan, who is also vice-president of the APEC Studies Association of Korea.

Noting that demand from the Chinese AI market is closely connected to South Korea's chip exports, Lee Young-chan said the new semiconductor cluster will stabilize South Korea's supply in dynamic random-access memory, high-bandwidth memory, and other chips and components to better meet demand from global markets, including China.

"Semiconductors and AI should not be viewed only as a zero-sum game," said Lee Young-chan, adding that it is extremely difficult for any single country to complete the entire value chain alone, and that South Korea and China have complementary strengths to develop a more mature model of industrial cooperation.

kelly@chinadailyapac.com