South Korea is investing $642 million in the Artificial Intelligence (AI) chip sector, particularly in view of the current hype around ChatGPT.
South Korea hoped to become a leader in AI chips because they needed to expand their chip factories. In order to expand their factories, they would have to put money on AI chips. They put a great deal of money. g with AI chip startups and cloud service providers, according to many people, especially in the world of tech. However, the increase in demand for AI data crunching also need increased processing power. This is the main source of current demand. In these years ahead – something that has both geopolitical and technology implications — and that’s pushing R&D initiatives from both Russia and China and from the broader international community. Moreover, it comes as other countries, such as South Korea, Japan, India, the U.S. and others to complement and better compete with China in the IT competition, they are also pushing their hardware development initiatives. South Korea’s advantage is that it’s already a giant. It’s not only the home to several major mobile companies and services, but it’s also a big supplier of components for even longer lists of other companies. South Korea set aside an amount of money (about 1.02 trillion won) for the AI semiconductor industry in the future. They plan to allocate about $795.3 million (301.8 billion won) for AI at the current time, and $235.3 million (1.0 trillion won) in the period of 2022 and 2026 (roughly three years). AI chipmakers, known as neural process units (NPUs), which are the farms which are supposed to be used in data centre for domestic chips, are to be bought by Seoul from three companies. The three Korean cloud firms, along with Furiosa the AI company and Sapeon Korea, are willing to bid for the data centers. We are not exactly sure which companies will partner with which companies.
*Korean and South Korea (Korean companies and services) Both AI chips are expected to be launched next year as commercial products in the AI industry. The second AI chip is due to market in the second quarter. Samsung has announced a partnership with its rival Naver to develop AI chips. They aim to secure 20 % of the global AI chip market in the next 15 years. The expected market for the AI chips for IoT is over $263,000,000 in 2031. According to projections, it is expected increase from only 11,200,000 dollars in 2021 to over $1.6 billion by 2031.