Establishment of the Presidential 'National AI Committee'
President Yoon Suk-yeol is speaking at the semiconductor issue review meeting held on the 9th at the Yongsan Presidential Office building in Seoul. [Image source=Yonhap News]
The government has decided to promote the ‘AI-Semiconductor Initiative’ and significantly expand research and development (R&D) to leap to the world’s third place in artificial intelligence (AI). The aim is to provide bold support for the development of lightweight AI and low-power semiconductors to enable global competition. Domestic investment incentives for semiconductor companies will be comprehensively reviewed, and a National AI Committee under the direct control of the president will be established.
On the 9th, the government held a ‘Semiconductor Issue Review Meeting’ at the presidential office in Yongsan, Seoul, attended by President Yoon Suk-yeol and related ministries to discuss these matters.
President Yoon directly presented the strategic direction of the AI-Semiconductor Initiative that day. The AI-Semiconductor Initiative started with the purpose of organically linking and cooperating AI semiconductors, AI models, hardware (HW), and software (SW) to leap to the world’s third place in AI. National R&D capabilities will be concentrated on nine technological innovations, and the scale of support will also be expanded.
President Yoon said, "We will invest 9.4 trillion won in the AI semiconductor sector by 2027 and create a fund worth 1.4 trillion won to support the growth of innovative AI semiconductor companies."
Regarding this, the government explained that it plans to concentrate national R&D capabilities on nine major AI semiconductor technological innovations, expand investment support, and support the entire AI semiconductor value chain, including talent cultivation, innovation infrastructure, global cooperation and expansion, and leading AI ethical standards. Additionally, the government plans to successfully host the ‘AI Seoul Summit’ next month to strengthen Korea’s global leadership in AI ethical standards.
President Yoon also hinted at the possibility of providing semiconductor subsidies that day. He said, "Semiconductor competition is an ‘industrial war’ and a ‘national total war.’ To establish a total response system equivalent to wartime conditions, the government will comprehensively review investment incentives for attracting the semiconductor industry." This is intended to help Korea take bold support measures for domestic companies to compete globally, following the large-scale support by the U.S. and Japan to Taiwan’s TSMC, the world’s largest foundry (semiconductor contract manufacturer).
President Yoon set a goal to achieve more than 10% market share in the global system semiconductor market by 2030, when the semiconductor mega cluster will begin full operation. He also expressed his intention to directly oversee the national AI strategy by establishing a National AI Committee, emphasizing the importance of public-private cooperation.
That day, the government also discussed follow-up measures for the semiconductor mega cluster, which will see a total investment of 622 trillion won. Samsung Electronics’ Yongin system semiconductor cluster, with an investment of 360 trillion won until 2047, plans to significantly shorten the development period compared to the original plan by utilizing the environmental impact assessment pre-consultation system and expediting land compensation.
SK Hynix’s Yongin semiconductor cluster, with an investment of 122 trillion won until 2045, requires additional water supply of a similar scale to the 270,000 tons of water already secured. The government plans to promptly finalize water supply measures once the companies and local governments establish water supply facility installation plans.
The government also plans to amend the Advanced Industry Act to provide a legal basis for financial support to local governments cooperating in the installation of infrastructure such as power and water supply. It will also push to extend the application period of the national strategic technology investment tax credit, which is set to expire at the end of this year.
To cultivate field-customized professionals, the government will select 10 additional semiconductor-specialized universities and 3 graduate schools, and expand semiconductor academy education personnel from 520 last year to 800 this year. It will also establish mobile public housing districts around semiconductor clusters and promptly promote the construction of the semiconductor highway (Hwaseong~Yongin~Anseong, 45 km). Plans will be made to provide package support for immigration, residence, and settlement to attract excellent overseas professionals to Korea.
During the discussion, major companies in the semiconductor field and ministers from related ministries engaged in in-depth discussions on global semiconductor supply chains, semiconductor clusters, and AI semiconductors. From the private sector, Lee Jung-bae, President of Samsung Electronics; Kwak No-jung, CEO of SK Hynix; Choi Soo-yeon, CEO of Naver; and Ryu Soo-jung, CEO of Sapeon Korea, participated.
From the government, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok; Minister of Trade, Industry and Energy Ahn Deok-geun; Minister of Science and ICT Lee Jong-ho; Minister of Environment Han Hwa-jin; and Minister of Land, Infrastructure and Transport Park Sang-woo attended. From the presidential office, Secretary General Lee Kwan-seop, Policy Chief Sung Tae-yoon, Senior Secretary for Economic Affairs Park Chun-seop, and Senior Secretary for Science and Technology Park Sang-wook were present.
President Yoon said, "Just as we dominated the world with memory semiconductors for the past 30 years, we will write a new semiconductor legend with AI semiconductors for the next 30 years," adding, "We will leap to global third place (G3) in AI technology." He emphasized, "We will comprehensively compare and analyze the investment environments and support systems of major countries and prepare bold support measures tailored to Korea’s circumstances."
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