Seoul Eyes Taiwan’s Success, Bets Big on AI and Chips
South Korea is investing heavily in AI and semiconductors, committing about US$1.2 trillion to strengthen its position in the global AI race. The government aims to emulate aspects of Taiwan's successful semiconductor ecosystem, with Samsung and SK Hynix leading major chip fabrication projects. However, experts say Taiwan's diversified chip supply chain and industrial structure remain key competitive advantages. Industry experts also warned that a rapid expansion of chip production could lead to oversupply, making it difficult for South Korea to fully replicate Taiwan's model.
South Korea’s Bold AI and Semiconductor Ambitions
REPORTER:
South Korea is rolling out mega investment plans. It’s pumping about $1.2 trillion US dollars into semiconductors, physical AI and AI data centers. Its goal to cement its status as a global AI powerhouse.
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We must secure the core elements of AI faster than any other country. Semiconductor, physical AI, and AI data centres are the three pillars for a great leap forward. We need to bring them together and, with a sense of urgency, concentrate the full capacities of the government and the private sector to build a Korean-style AI ecosystem
Industry veterans Samsung and SK Hynix are leading the effort. Under the government’s plan, they will each build two chip fabs, riding the AI-driven memory chip boom. For this project, South Korea is looking to learn from Taiwan’s success with its science parks. But there are some differences in the approach.
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The South Korean government provides a lot of support to private businesses. But in Taiwan companies mostly have to rely on their own efforts.
As everyone can see now whether it’s the stock market or the economy in general if you want the country’s economy to do well then the government really needs to provide substantial support to these industries.
Experts note that Taiwan’s technology supply chain remains a key strength, keeping it competitive in the global AI race.
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Although memory chips are no longer Taiwan’s main semiconductor focus, Taiwan’s broader strength lies in its ability to let different companies come to Taiwan to invest and produce various types of chips. What they really need is an industrial structure like Taiwan’s. Only then can they attract more customers and partners.
But experts warn that a massive expansion in semiconductor capacity could create a supply glut in the long term and present challenges for Korea in replicating Taiwan’s model.
