How South Korea’s AI megaprojects aim to ‘maintain edge’ over China, meet demand

South Korea announced a $518 billion semiconductor push to maintain its technological edge over China, led by Samsung Electronics and SK Hynix. The plan includes building a second chipmaking hub in the southwest and large-scale AI data centers, supported by government infrastructure and discounted electricity rates.

How South Korea’s AI megaprojects aim to ‘maintain edge’ over China, meet demand The goal, however, faces potential hurdles including workers’ reluctance to relocate away from Seoul and dispersed supply chains South Korea https://www.scmp.com/topics/south-korea?module=inline&pgtype=article ’s US$518 billion semiconductor https://www.scmp.com/topics/semiconductors?module=inline&pgtype=article push aims to tap the artificial intelligence https://www.scmp.com/topics/artificial-intelligence?module=inline&pgtype=article boom into a durable industrial advantage and keep up with leading rival China, according to observers. The plan is intended to secure supplies of advanced memory chips needed for AI data centres and computing infrastructure, while easing pressure on the Seoul metropolitan area by creating a second major chipmaking base in the country’s southwest. Lee Jae Myung https://www.scmp.com/topics/lee-jae-myung?module=inline&pgtype=article on Monday unveiled the government’s “Three Mega Projects” initiative, centred on semiconductors, physical AI and AI data centres, as part of a strategy to turn South Korea into a global technology powerhouse. Samsung Electronics https://www.scmp.com/topics/samsung-electronics?module=inline&pgtype=article and SK Hynix will invest a combined 800 trillion won US$518 billion in the southwestern region to establish a second major semiconductor production hub alongside the emerging Yongin semiconductor cluster near Seoul. Separately, SK Group, GS Group, Naver and other companies will also invest a total of 550 trillion won by 2029 to build large-scale AI data centres nationwide. The government will support the initiative by providing essential infrastructure, including electricity, water and industrial sites, and plans to offer discounted electricity rates for AI data centres. “These megaprojects represent South Korea’s efforts to maintain its technological edge in semiconductors over China and other competitors,” said Park Jae-guen, a renowned semiconductor expert at Hanyang University.