South Korea has announced an ambitious AI strategy aimed at strengthening its global leadership in semiconductors, artificial intelligence and data infrastructure through investments worth hundreds of billions of dollars.
President Lee Jae Myung described the initiative as a “great leap forward”, centred on semiconductors, physical AI and large-scale data centres.
Semiconductor giants lead investment push
The plan will be driven by major chipmakers Samsung Electronics and SK Hynix, which will invest around 800 trillion won ($518bn) alongside suppliers to build new fabrication facilities.
Additional investments are expected across multiple regions, including chip packaging clusters and infrastructure linked to the wider AI strategy.
New AI data centre expansion
The government also unveiled plans for large-scale AI data centres, supported by investments from SK Group, GS Group and Naver.
Officials say the AI strategy in South Korea includes building multi-gigawatt facilities over the coming decade, positioning the country as a major global AI infrastructure hub.
Regional development focus
The initiative also aims to boost economic development outside the Seoul metropolitan area, with major chip clusters planned for the southwest region.
Authorities say the AI strategy will use regional resources and infrastructure to balance growth across the country.
Political debate over investment plan
Opposition parties have criticised aspects of the plan, arguing that location decisions may be influenced by political considerations rather than purely industrial strategy.
They claim the government is encouraging investment in politically supportive regions, while officials insist the strategy is driven by long-term economic and technological goals.
Global race for AI leadership
The AI strategy reflects the intensifying global competition for dominance in artificial intelligence, semiconductors and advanced computing infrastructure.
Also read: UK supercomputer project begins with £750m investment
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