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Seoul, South Korea (GAX News) — In a bold strategic move to secure its position in the intensifying global semiconductor race, South Korea has announced a massive $5 billion government-backed investment fund dedicated to accelerating the development of next-generation artificial intelligence chips.
A Strategic Bet on National Competitiveness
The fund, unveiled by the Ministry of Science and ICT on Wednesday, will channel direct investment and low-interest loans toward domestic AI chip startups as well as established semiconductor manufacturers looking to expand their AI capabilities.
“This is not merely an investment in technology — it is an investment in our nation’s future competitiveness on the world stage,” declared Minister Park Bo-kyung at a press conference in Seoul.
Challenging Taiwan and the United States
The initiative comes at a critical juncture as South Korea seeks to close the gap with Taiwan’s TSMC and the rapidly expanding American chip ecosystem. Industry analysts believe the fund could enable Korean companies to develop AI processors capable of rivaling those produced by Nvidia and AMD.
Market Response
Shares of Samsung Electronics and SK Hynix climbed 2.3%% and 3.1%% respectively following the announcement. The Korea Semiconductor Industry Association projects AI chip demand will grow at 40%% annually through 2030.
— David Park, GAX News Asia-Pacific Bureau
