South Korea has announced one of its largest technology investment programmes, committing at least $880 billion to strengthen its artificial intelligence and semiconductor industries. The initiative is aimed at boosting the country’s global competitiveness while expanding advanced technology infrastructure beyond the capital region.
President Lee Jae-myung unveiled the strategy, saying the country must accelerate innovation in key technologies to remain competitive in the global AI race.
“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.”
The investment plan goes beyond building new chip manufacturing facilities. It includes expanding AI data centres, investing in robotics and creating technology ecosystems that support research, innovation and large-scale production.
The government also plans to spread future technology projects across regions outside Seoul to encourage balanced economic growth. New industrial clusters and AI infrastructure are expected to create jobs, attract businesses and reduce dependence on the capital region.
South Korea’s leading semiconductor companies, Samsung and SK Hynix, are expected to play a central role in the initiative. Both companies are major global suppliers of memory chips used in AI servers and high-performance computing systems, with demand continuing to rise as AI adoption accelerates worldwide.
The announcement comes as countries including the US, China, Japan and Taiwan continue increasing investments in semiconductor manufacturing and AI infrastructure. Growing demand for advanced processors and memory chips has intensified global competition while driving higher component prices across the technology industry.
The continued expansion of AI services has also strengthened business for semiconductor manufacturers, particularly those supplying memory chips required for large AI models and data centres. Rising component costs have already led several technology companies, including Apple and Microsoft, to increase prices on selected products.
With this long-term investment strategy, South Korea aims to strengthen its position as a global technology leader while preparing its economy for the next phase of AI-driven industrial growth.
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