South Korea wants to be a top A.I. hub — its memory chip dominance could be an advantage
Industry observers believe South Korea’s dominance in the memory chip market and a robust artificial intelligence ecosystem give it an advantage in the global AI chip race.
Memory chips are one of South Korea’s strongest industries. There is a lot of memory required for AI. Dalton Investments senior analyst James Lim says that South Korea’s dominance in the memory market is definitely an advantage.
According to its digital strategy, South Korea aims to become one of the top three AI powerhouses by 2027, behind the U.S. and China.
According to CNBC, the country’s minister for science, information and communications technology, Jong-ho Lee, “aims to maintain its leading position in memory semiconductors.”
Among the fastest growing and most promising areas is the area of artificial intelligence semiconductors, in which South Korea hopes to become a dominant player.
AI adoption has exploded in recent months due to large language models like ChatGPT, which are increasingly reliant on high-performance memory chips. In order to generate humanlike responses, generative AI models use such chips to remember past conversations and preferences.
Generative AI is a type of artificial intelligence that can generate content such as text, images, code and more.
In order for AI to operate, including ultra-large language models, a significant number of semiconductor chips are required, and global companies are competing fiercely to create high-performance and low-power AI semiconductors.”
Chip giants Samsung, SK Hynix
The two largest dynamic random-access memory chipmakers in the world, Samsung Electronics and SK Hynix, have been actively investing in AI research and development.
In March, Samsung announced plans to invest 300 trillion Korean won ($228 billion) in a new semiconductor plant.
Last month, Dylan Patel of research and consulting firm SemiAnalysis told CNBC that Samsung is “spending and spending and spending.”. What is the reason for this? This is so that they can keep up with technology and maintain their leadership status.”