South Korea pushes for AI semiconductors as global demand grows

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The South Korean government has made no secret of its ambition to be a key participant in the international artificial intelligence industry, including producing the semiconductors powering AI functionalities.

Last week, the nation ’s communications and information technologies regulator announced plans to develop up to 50 kinds of AI -focused platform semiconductors from 2030,” Yonhap News Agency reported. The government will be on the search for tens of thousands of local specialists to direct the new wave of innovation.

South Korean has made several promises to encourage next-generation chip companies in recent times. Earlier this year, as an instance, it announced plans to invest about 1 trillion won ($870 million) on AI chips commercialization and production prior to 2029. This past year, President Moon Jae-in declared his “Presidential Initiative for AI” to increase public awareness on the industry.

These efforts come amid growing need for AI-related chips, that, from McKinsey quotes , could account for almost 20% of all semiconductor need and generate about $67 billion in revenue by 2025.

South Korea is currently home to two of the planet ’s largest memory chip manufacturers — Samsung and SK hynix. While ’s a lucrative industry, it’s only one relying more on “the production process as opposed to core technologies,” detected Seewan Toong, an independent IT industry expert.

“It’s about making the chip smaller, denser, more efficient, and placing more memory on one chip,” he further added.

The nation wants to make its semiconductors wealthier and vow to own 20% of the international AI chip market by 2030, according to Yonhap.

Samsung dabbled in next-gen chips as it turned into the mass-production companion for Baidu’s AI processors late this past year. Back in July, the conglomerate declared hiring 1,000 new employees to work on chips and AI. SK hynix has selected its very own Chinese ally by backing Horizon Robotics, an AI chip designer last valued at $3 billion.

China, which has focused on the application of AI as opposed to fundamental research, has similarly shelled out state funds for home-grown semiconductor companies as the nation suffers from U.S. sanctions on core technologies. The issue is how many startups, under condition support, will endure to contend with international behemoths like Nvidia and Qualcomm.

“This can be a really wise move by South Korea,” said Albert Liu, chief executive of Kneron, also a well-financed edge AI startup endorsed by Alibaba, Li Ka-shing’s Horizons Ventures and Qualcomm.

“Emerging players have a enormous opportunity because the market itself is a enormous opportunity, as it all from a Tesla to a toaster will need a border AI chip during the upcoming few decades. 5G, AI and also IoT is coming of age, also enabling the technology ecosystem which will enhance our lives in a secure and private way. ”

The story is upgraded on October 13 with expert comment.


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