South Korean President Yoon Suk Yeol, Washington DC, 2023. Credit: Paul Froggatt/shutterstock

South Korea’s President Yoon Suk Yeol has announced a $6.9bn (9.4trn Won) investment into AI to consolidate the country’s chip manufacturing dominance. 

The money will fund further research and development into advancing AI technology. 

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The investment includes a separate investment of 1.4trn Won into South Korea’s semiconductor manufacturing plants. 

Yoon described the current state of the chip market as an “all-out war” between countries in a meeting with chip industry insiders.  

Yoon stated that South Korea would aim to become one of the top three global semiconductor manufacturers responsible for over 10% of the world’s chip manufacturing by 2030. 

South Korea’s investment coincides with reports that the US will award Samsung with $6bn in subsidies for an expansion on its Texas chip manufacturing plant. 

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Reuters reported that sources familiar with the matter stated that US Commerce Secretary Gina Raimondo is set to announce the move to bolster domestic chip manufacturing. 

The sources added that as part of the deal between the US and Samsung, Samsung had promised to double its investment into the US. 

According to research and analysis company GlobalData’s executive briefing on AI, the global semiconductor industry reached a value of over $600bn in 2023. 

GlobalData credits rising global interest in AI for the growth in semiconductor technology, as more advanced chips are needed to meet the computational needs of maturing AI. 

The fastest growing segments of semiconductor technology were analog, sensors and digital logic.