South Korea launches $91.5 bn tech spending plan to boost semiconductors and AI

The South Korean government announced a comprehensive ₩120 trillion (about $91.5 billion) fiscal stimulus aimed at strengthening the country’s technology sector. The package will fund new semiconductor production facilities, including four wafer plants that Samsung Electronics and SK Hynix will build in the southwest, and a series of AI data centres slated to reach a combined 10 GW capacity by 2035. Over the next decade the state will invest ₩1 000 trillion in AI‑focused infrastructure, targeting a total power capacity of more than 18.4 GW.

The plan also provides direct subsidies, tax credits and state‑backed venture capital to spur R&D in AI chips, quantum computing and green‑tech manufacturing. It is designed to counter a recent decline in South Korean semiconductor exports, reduce a growing trade deficit, and diversify supply chains away from China. Analysts note the programme could reshape global chip supply dynamics while raising concerns about trade frictions with the United States and the European Union.