GlobalData forecasts that the overall AI market will be worth $909bn by 2030. Credit: Getty Images/Yosi Azwan.

South Korea announced a 26trn won ($19bn) support package for the country’s semiconductor industry on Thursday (23 May).

President Yoon Suk Yeol said around 17trn won will be spent on a financial support programme for chips through the Korea Development Bank, which will go towards helping back large-scale investments by semiconductor companies in South Korea. 

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Another 1trn won will be used to aid companies that design chips but outsource the manufacturing, according to Reuters.

South Korea’s chip industry accounted for 18% of the country’s entire exports in April; however, the country’s market share of chip designing was just 1%.

Led by companies such as NVIDIA and Taiwan Semiconductor Manufacturing Company (TSMC), South Korea’s fabless sector has fallen behind, according to Yoon’s government office.

TSMC reported a 34.3% year-on-year (YoY) increase in revenue during March 2024, largely credited to rising global interest in and adoption of AI. 

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TSMC stated that its March revenue totalled $6.1bn, making the fastest growth in profit for the company since 2022. Its revenue for the first quarter (Q1) of 2024 was up 16.5% YoY at $18.5bn. 

This is in line with the upper half of TSMC’s expectations, as the company stated in January 2024 that it expected Q1 revenues to be $18bn–18.8bn. 

GlobalData forecasts that the overall AI market will be worth $909bn by 2030, having grown at a compound annual growth rate (CAGR) of 35% between 2022 and 2030. In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.

GenAI is expected to become ubiquitous across every industry and a catalyst for broader AI capabilities such as machine learning, computer vision and autonomous robots.