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In an ambitious move to solidify its standing as a global leader in the semiconductor industry, South Korean President Yoon Suk Yeol announced on April 9, 2024, a substantial investment of 9.4 trillion won ($6.94 billion) in artificial intelligence (AI) by 2027. This strategic initiative underscores South Korea's determination to maintain its competitive edge in the cutting-edge semiconductor chip sector.
The global power semiconductor market has experienced substantial growth, driven by various factors and key driving forces. A primary catalyst for this expansion is the rising demand for energy-efficient technologies across a diverse range of applications.
Some of the prominent names established in this market are:
Littlefuse Inc
ROHM Semiconductor
Allegro Microsystems LLC
Get the complete list in the global power semiconductor market report.
This significant financial commitment, which includes a separate 1.4 trillion won fund designed to nurture AI semiconductor companies, positions South Korea in the race against technological powerhouses such as the United States, China, and Japan. These nations have been aggressively advancing their semiconductor capabilities through hefty policy support aimed at fortifying their domestic supply chains.
Semiconductors play a critical role in powering South Korea's export-driven economy. In March, the country's chip exports soared to a 21-month high, totaling $11.7 billion, which accounts for nearly a fifth of all exports from Asia's fourth-largest economy.
A study by BIS Research presents an in-depth analysis of the market dynamics and the estimation of the global IoT market size over the forecast period 2019-2029. The report's scope is mainly focused on the end-use industries catering to the IoT chip market for different regions.
President Yoon likened the global semiconductor competition to "an industrial war and an all-out war between nations" during a meeting with policymakers and industry leaders. The new investment is targeted at bolstering research and development in AI chips, including artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips, which are essential for advancing technology and innovation within the sector.
The South Korean government has also expressed its intention to push the boundaries of technology by promoting the development of next-generation artificial general intelligence (AGI) and safety technologies. These efforts are aimed at transcending current capabilities and leading the way in the evolution of smart technologies.
With a bold vision for the future, President Yoon has set an ambitious target for South Korea to become one of the top three countries in AI technology, including semiconductor chips. He aims for the nation to capture a 10% or more share of the global system semiconductor market by 2030. "Just as we have dominated the world with memory chips for the past 30 years, we will write a new semiconductor myth with AI chips in the next 30 years," Yoon proclaimed, signaling a new era of technological dominance for South Korea.
The recent earthquake in Taiwan, a leading figure in the global semiconductor market, has so far had a limited impact on South Korean companies. However, President Yoon has called for thorough preparations to navigate future uncertainties, highlighting the volatile nature of global supply chains and the importance of resilience in the face of natural disasters.
This massive investment and the strategic direction outlined by President Yoon reflect South Korea's resolve to not only retain but also enhance its position as a global leader in the semiconductor industry. By focusing on AI and advanced semiconductor technologies, South Korea aims to secure a sustainable, competitive advantage in the global market, ushering in a new era of technological innovation and economic growth.
