South Korea launches 880 bn dollar plan to boost chip and AI dominance

South Korea has announced an investment plan worth at least 880 bn dollars to expand its semiconductor and AI capabilities as part of its Three Mega Projects initiative. The strategy aims to build new chip production hubs, data centers and robotics infrastructure, while also boosting economic growth in regions outside Seoul. President Lee Jae-myung emphasized that securing core AI technologies is essential for the country’s future competitiveness, especially as regional rivals like Taiwan, China and Japan accelerate their own chip investments. Major industry players Samsung and SK Hynix are backing the plan, benefiting from soaring global demand for AI chips. The semiconductor boom has led to shortages and rising component prices, prompting companies like Apple and Microsoft to increase device prices. Despite the massive spending, some investors are concerned about overheating in the AI sector.

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