'Semiconductor Issue Review Meeting' Hosted
"The Future of the Semiconductor Industry Depends on AI"
1.4 Trillion KRW Fund Established for AI Semiconductor Companies
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]
President Yoon Suk-yeol announced on the 9th that "9.4 trillion won will be invested in the fields of artificial intelligence (AI) and AI semiconductors by 2027, and a fund worth 1.4 trillion won will be established to support the growth of innovative AI semiconductor companies." He also stated, "The semiconductor competition is an 'industrial war' and a 'national total war,'" adding, "To establish a total response system equivalent to wartime conditions, the government will thoroughly reexamine investment incentives for attracting the semiconductor industry."
Amid large-scale support from the United States and Japan to Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturing) company, South Korea intends to implement bold support measures for domestic companies to compete globally. In particular, the government plans to establish a 'National AI Committee' directly under the president and accelerate the creation of the world's largest semiconductor mega cluster worth 622 trillion won, aiming to increase the global system semiconductor market share to over 10% by 2030.
On the morning of the same day, President Yoon chaired a 'Semiconductor Issue Review Meeting' at the Yongsan Presidential Office, stating, "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," and "We will leap to become one of the G3 (the three major countries) 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 South Korea's circumstances."
Yoon: "Preparing Bold Support Measures Tailored to Korea's Circumstances"
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 meeting was convened to review recent global semiconductor supply chain trends following partial shutdowns at TSMC and to discuss the progress of the semiconductor mega cluster initiative and AI semiconductor initiatives announced at the 3rd Public Livelihood Forum in January.
In his opening remarks, President Yoon evaluated, "The semiconductor market, which accounts for 19% of our exports, is now recovering, revitalizing the entire industry including industrial production and facility investment." He noted that although the impact of the partial shutdown of some TSMC semiconductor lines due to the Taiwan earthquake has not been significant so far, the future situation is unpredictable, so thorough preparation without any gaps is necessary.
President Yoon said, "The Office of the Senior Secretary for Economic Affairs and the Office of the Secretary for Economic Security, together with the National Intelligence Service, are closely monitoring the situation in Taiwan," and urged, "If government action is required, please respond immediately without delay to ensure that companies do not experience inconvenience."
US, Japan, and Europe Build Independent Semiconductor Supply Chains... "Falling Behind Will Be Difficult"
President Yoon pointed out, "Especially due to the recent Taiwan earthquake, the US, Japan, and Europe will accelerate the establishment of their own semiconductor supply chains," adding, "If South Korea falls behind this trend, not only the semiconductor industry but the entire economy will face significant difficulties in advancing."
He then reviewed the infrastructure construction status for the world's largest semiconductor mega cluster worth 622 trillion won, including power, water supply, housing, and transportation, announced at the 3rd Public Livelihood Forum, and urged related ministries to ensure smooth follow-up measures.
President Yoon promised that the government will take responsibility for supplying essential electricity and industrial water for the semiconductor mega cluster, starting construction of the Yongin National Industrial Complex by 2026. Procedures such as environmental impact assessments and land compensation, which usually take a long time, will be accelerated by more than twice the speed to complete more than half the time earlier. He said, "We finalized the power supply plan in December last year to meet the power demand exceeding 10GW (gigawatts)," and added, "To build power infrastructure without disruption according to companies' investment schedules, legal support is also necessary. We will strive for the prompt passage of the 'Special Act on Expansion of National Power Grid,' currently pending in the National Assembly."
He also announced, "The pipeline stretching 48 km from Paldang Dam to Yongin will soon begin installation work after being exempted from preliminary feasibility studies in February." Regarding living infrastructure, he explained that the semiconductor highway will complete the private investment eligibility review by this year, and the recently opened GTX (Great Train Express)-A line will add Guseong Station in June.
Furthermore, President Yoon evaluated, "The semiconductor market is rapidly shifting its focus to 'AI semiconductors,'" and said, "AI is a foundational technology that changes not only industries but society, and it can be called a tremendously powerful game changer." He emphasized that it is no exaggeration to say that the future of the semiconductor industry depends on AI, and stressed, "We must carefully review strategies so that South Korea can secure early leadership in the future semiconductor market landscape."
President Yoon stated, "Few countries possess both hardware manufacturing and software development and utilization capabilities," and declared, "South Korea will leap to become one of the G3 in AI technology and dominate the future AI semiconductor market beyond memory semiconductors by promoting the AI semiconductor initiative." He explained, "First, we will boldly expand R&D investment in next-generation high-bandwidth memory (P-HBM) that adds processing functions to high-bandwidth memory (HBM), neural processing units (NPU), and Korean-style AI semiconductors based on neuromorphic technology," and added, "By applying Korean-style low-power, high-performance AI semiconductors, we will evolve the supercomputing data center K-Cloud and lead the global market with stand-alone smart devices that can be used without PC or smartphone connection by applying on-device AI."
'National AI Committee' Established... "Will Personally Oversee"
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]
President Yoon emphasized, "We will lead the development of AI technology responsibly and explainably by overcoming the limitations of existing generative AI through the development of next-generation general-purpose AI core technologies and AI safety technologies." To this end, public-private cooperation is important, and the 'National AI Committee' will be established in the future. He said, "The AI Strategy High-Level Council was launched on the 4th," and added, "This council will be elevated to the National AI Committee, and I will personally oversee the national AI strategy."
President Yoon also announced that South Korea will continue to secure global leadership in AI ethics standards. Through the successful hosting of the 'AI Seoul Summit' in May this year, which will discuss AI safety, innovation, and inclusion, South Korea plans to solidify its global leadership in AI ethical standards.
He urged, "I ask everyone to keep running without pause until South Korea writes the second chapter of the K-semiconductor legend with AI semiconductors and becomes an AI G3 based on this," and added, "I will run alongside you and support you with all my strength."
In the subsequent discussion, major companies in the semiconductor field and ministers from related ministries engaged in in-depth discussions on topics such as the global semiconductor supply chain, semiconductor clusters, and AI semiconductors.
Attendees from the private sector included 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. From the government side, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok; Minister of Trade, Industry and Energy Ahn Duk-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, Chief Secretary 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.
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