South Korea unveils trillion-dollar chip and AI mega project

South Korea has unveiled a plan to invest approximately $1 trillion in the chip and artificial intelligence (AI) sectors to capitalise on the surging global demand for AI technology.

The mega project will be implemented jointly with the country's top chip manufacturers, according to a report by the BBC.

The project is part of South Korea's 'Three Mega Projects', aimed at developing new chip production facilities, data centres and robotics technology.

President Lee Jae-myung announced on Monday that the plan is intended to revitalise the economies of regions outside the capital, Seoul.

With AI proliferation driving continuous growth in semiconductor demand, South Korea is making this major move as regional rivals such as Taiwan, China and Japan are also investing heavily in chip factories and other technologies.

"We must secure the core components of AI faster than any other country. Semiconductors, physical AI and AI data centres are the three main axes of this major advancement," President Lee said.

The plan was announced during a television programme with the chiefs of the country's top two chipmakers, Samsung and SK Hynix. The two companies will jointly build a semiconductor production hub in the country's south-western region.

President Lee also announced plans to establish other AI infrastructure hubs outside Seoul, as most of the country's advanced factories are currently concentrated in the capital.