"South Korea and Taiwan Must Become Sovereign AI Partners to Counter DeepSeek"

[Silicon Shield, Into the Heart⑫-End]
Interview with Ryu Mengjun, Director of the First Research Institute at Taiwan's Chung-Hua Institution for Economic Research
"The Emergence of DeepSeek Will Spur Global AI Investment"
Sovereign AI Is Ultimately Necessary... Cooperation with Taiwan Is Key
"Supply Chain Relocation Cooperation with Third Markets Such as India"

Editor's NoteTSMC of Taiwan, which has quietly grown in the semiconductor market, is reorganizing its 'silicon shield' lineup in response to tariff pressures from U.S. President Donald Trump. Recently, it announced a surprise investment of $100 billion (approximately 145.9 trillion KRW) in the United States, simultaneously countering the Trump-led tariff bomb and focusing on production bases within Taiwan to enhance its deterrence against China. In particular, it is accelerating the establishment of ultra-fine semiconductor process facilities to swiftly respond to market demand. Once clinging only to unknown (無名) industries for survival, TSMC is now actively defending its position as the world's number one semiconductor foundry. Asia Economy diagnoses TSMC's strategies, risk factors, and opportunities for Korea in response to the global trade war through local reporting in Taiwan and expert interviews over four installments.<Series Order>
<1> TSMC, the God... Visiting the '2nm' Sanctuary
<2> The 'Six Knots' Holding Back TSMC and Technology Security
<3> The Opening of Unknown Taiwan
<4> Korea·Taiwan, Between Deterrence and Cooperation

On the 20th of last month, Liu Mengjun (劉孟俊), Director of the First Research Institute at the Taiwan Chung-Hua Institution for Economic Research (CIER), was interviewed by Asia Economy at his office in Taipei. (Photo by Kim Hyunjung)

"The future technological war will be a data war. China, the largest producer, will provide data only to allied countries, and many sovereign artificial intelligences (AI) following DeepSeek will emerge. Korea also needs trustworthy partners to control data flow and develop AI."

Ryu Mengjun (劉孟俊), Director of the First Research Institute at Taiwan's Chung-Hua Institution for Economic Research (CIER), said this in an interview with Asia Economy last month at his office in Taipei regarding cooperation between Korea and Taiwan. Director Ryu explained, "Korea will also need to cooperate with overseas partners in government and business to develop sovereign AI," adding, "Taiwan, with TSMC's strong production capacity, is one of the good partners."

Director Ryu emphasized, "Singapore is attempting cooperation with neighboring countries like Malaysia and proposed developing 'regional' AI," and added, "Korea should create AI that preserves and protects its own culture and traditions, which is not only a business domain but also a matter of language, culture, and tradition."

Regarding the China-originated 'DeepSeek' shock, which in Korea escalated into 'public-private bans,' he said, "There is unlikely to be a ban in Taiwan's private sector," and praised Korea's swift response. He noted, "When sensitive questions about the mainland (political situation) are asked, abnormal answers tend to come out, but ultimately, this has stimulated the global will for technological development," further explaining, "Taiwan has also accelerated in related fields, which is a commendable achievement."

He also foresaw the need to consider shifting supply chains by partnering with markets such as India or ASEAN (Association of Southeast Asian Nations). He advised, "There are increasing cases of entering each country by finding local partners and establishing production plants to relocate supply chains," adding, "In this case, Korea and Taiwan could cooperate to proceed." This implies that Taiwan, which faces diplomatic difficulties due to the mainland China's 'One China' policy, can explore various business options through Korea.

Director Ryu also cited overseas Taiwanese like Jensen Huang, CEO of NVIDIA, and the broader Chinese diaspora (Taiwanese or Chinese immigrants settled in other countries) as assets of Taiwan. He said, "They have wide activity ranges and abundant information, serving as significant human infrastructure for the Taiwanese government and companies," adding, "They also play roles in connections through non-governmental organizations (NGOs), and without their help, Taiwan would have faced more difficulties in the international community."