Anna Hartz
New Tech Tensions Push South Korea to Expand Chip Spending
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The world is becoming more and more dependent on advanced technology.
From smartphones to electric cars, semiconductors power just about everything.
As demand keeps growing, countries are fighting to stay ahead. South Korea doesn’t want to fall behind.
This week, the South Korean government said it would invest $23.1 billion in its semiconductor industry, according to Ziare.
That’s nearly $5 billion more than the $18.2 billion that was already planned. The news was reported by the BBC.
The extra money comes during a time of uncertainty. Officials say changes in U.S. trade policies have added pressure on global chip supply chains.
South Korea wants to stay strong and competitive, no matter what happens in the global market.
The new money will go toward building factories and research centers. It will also help train more workers and attract top talent.
The goal is to boost the country’s chip production and support innovation.
South Korea is already home to Samsung Electronics. Samsung is the biggest maker of memory chips in the world.
Still, it has fallen behind in the growing field of AI chips. These are the chips that power artificial intelligence tools and systems.
Even though Samsung had record chip sales in 2024, it hasn’t kept up with competitors when it comes to AI.
Last October, Samsung publicly admitted that its profits were lower than expected.
The company also shared concerns about staying competitive in the fast-moving chip industry.
The government’s new funding plan is meant to help change that. With more investment, South Korea hopes to close the gap and lead again in both traditional and next-generation chips.
Chips are now as important as oil once was. They’re in everything, and countries know it.
That’s why South Korea isn’t waiting around. It’s betting big on its tech future.
And with over $23 billion on the table, it’s a bet the country is serious about winning.