South Korea unveils $880bn chip and AI investment plan
South Korea has unveiled plans for at least $880bn (£666bn) of investments to build out the country's chip manufacturing and artificial intelligence (AI) capabilities in the coming years.
It is part of the country's so-called Three Mega Projects to develop new chip production hubs, data centres and robotics technology.
The plan is aimed at rejuvenating the economies of areas outside the capital Seoul, President Lee Jae-myung said on Monday.
It comes as regional rivals like Taiwan, China and Japan are investing heavily in chip factories and other technologies as the AI boom pushes up demand for semiconductors.
"We must secure the core elements of AI faster than any other country," Lee said. "Semiconductors, physical AI, and AI data centres are the triple axis for a great leap forward."
Lee announced the plans in a televised event alongside the leaders of Samsung and SK Hynix, the country's two largest chipmakers.
Lee also announced plans to build other AI infrastructure hubs outside of Seoul, where most of the country's advanced factories are currently concentrated.
Earlier, Lee said in a statement that the project was a matter of "survival" for the country to address the decline in rural areas due to the concentration of industries in Seoul.
"Now, we must break this long-standing cycle of discrimination and marginalisation - not only for the sake of justice and equity, but also to ensure sustainable and inclusive growth," he wrote.
Samsung and SK Group, which count the likes of AI chip giant Nvidia among their customers, have been some of the biggest beneficiaries of the surge in spending on AI infrastructure.
US tech giants - including Google, Amazon and Meta - said they will spend $650bn into the technology this year.
SK Hynix's stock market valuation topped $1tn in May, driven by the boom in AI data centres.
The surge in demand for chips to power AI has led to a global shortage of semiconductors, sending prices higher.
Last week, Apple and Microsoft raised the prices of some of their devices, due to higher costs of components.
But some investors have raised concerns about the huge amounts of money being poured into AI, which has triggered some shares to slide in recent days.
Read the full story at BBC ↗
South Korea has announced $880bn in planned investments for chip production, artificial intelligence infrastructure, and robotics development. The Three Mega Projects initiative targets both technological advancement and geographic economic distribution, with new manufacturing hubs and data centres planned outside Seoul where current production concentrates. President Lee Jae-myung framed the investment as necessary competitive positioning as regional rivals invest similarly. Samsung and SK Hynix, South Korea's major chipmakers serving companies like Nvidia, participated in the announcement. Global semiconductor demand has risen sharply due to AI deployment, with US tech companies committing $650bn to AI infrastructure this year. The chip shortage has increased component costs, reflected in recent price rises for devices like Apple and Microsoft products. Market concerns about AI investment levels have influenced recent share movements.
Read the full story at BBC ↗
South Korea has unveiled plans for at least $880bn (£666bn) of investments to build out the country's chip manufacturing and artificial intelligence (AI) capabilities in the coming years.
It is part of the country's so-called Three Mega Projects to develop new chip production hubs, data centres and robotics technology.
The plan is aimed at rejuvenating the economies of areas outside the capital Seoul, President Lee Jae-myung said on Monday.
It comes as regional rivals like Taiwan, China and Japan are investing heavily in chip factories and other technologies as the AI boom pushes up demand for semiconductors.
"We must secure the core elements of AI faster than any other country," Lee said. "Semiconductors, physical AI, and AI data centres are the triple axis for a great leap forward."
Lee announced the plans in a televised event alongside the leaders of Samsung and SK Hynix, the country's two largest chipmakers.
Lee also announced plans to build other AI infrastructure hubs outside of Seoul, where most of the country's advanced factories are currently concentrated.
Earlier, Lee said in a statement that the project was a matter of "survival" for the country to address the decline in rural areas due to the concentration of industries in Seoul.
"Now, we must break this long-standing cycle of discrimination and marginalisation - not only for the sake of justice and equity, but also to ensure sustainable and inclusive growth," he wrote.
Samsung and SK Group, which count the likes of AI chip giant Nvidia among their customers, have been some of the biggest beneficiaries of the surge in spending on AI infrastructure.
US tech giants - including Google, Amazon and Meta - said they will spend $650bn into the technology this year.
SK Hynix's stock market valuation topped $1tn in May, driven by the boom in AI data centres.
The surge in demand for chips to power AI has led to a global shortage of semiconductors, sending prices higher.
Last week, Apple and Microsoft raised the prices of some of their devices, due to higher costs of components.
But some investors have raised concerns about the huge amounts of money being poured into AI, which has triggered some shares to slide in recent days.
Read the full story at BBC ↗
South Korea unveiled plans for $880bn in investments for chip manufacturing, AI capabilities, and robotics The plan is part of the Three Mega Projects targeting chip production hubs, data centres, and robotics technology Investment aims to develop infrastructure outside Seoul to rejuvenate regional economies Samsung and SK Hynix participated in the announcement alongside President Lee Taiwan, China, and Japan are investing heavily in similar semiconductor and technology sectors US tech giants committed $650bn to AI infrastructure investment this year Global semiconductor demand has increased due to AI deployment Recent price increases for Apple and Microsoft devices reflect higher component costs The investment is necessary for South Korea to 'secure the core elements of AI faster than any other country' The project represents a matter of 'survival' for addressing rural economic decline Some investors have raised concerns about the scale of AI investment
Read the full story at BBC ↗
- South Korea announced an $880bn investment plan across chip manufacturing, AI, and robotics to strengthen its semiconductor capabilities
- The initiative aims to decentralize industrial development beyond Seoul and boost regional economies
- The plan responds to global competition from Taiwan, China, and Japan in semiconductor production amid surging AI demand