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Korea Builds Data Centers Equipped with Domestic AI Chips

Microcircuit with chip close up

August 18, Seoul- The Korean government released plans to build two data centers equipped with home-grown artificial intelligence semiconductors. The move is aimed at increasing the country’s competitiveness in the high-performance AI chip market, currently dominated by Nvidia.

At a meeting held in Seoul on Thursday, the cutting-edge facilities are to be built in one of the country’s wealthy districts of Pangyo, Gyeonggi-do province by 2025, and the southwestern city of Gwangju next year.

By utilizing domestically produced AI chips, the government aims to improve data security and stimulate local technological innovation. In terms of R&D funding, the government plans to give additional points to operators using domestically manufactured AI chips.

The data centers’ strategic placement is expected to foster collaboration among local businesses, research institutions, and startups, thereby creating an ecosystem for technological advancements. The government plans to attract 7.2 trillion won (US$ 5.38 billion) of private investment by easing regulations on emerging technologies.

Korea’s Minister for Science and Information and Communications Technology said the country is seeking to emerge as a prominent player in the global AI chip race following the U.S. and China, utilizing its current dominance in the memory chip market. Domestic firms Samsung Electronics and SK Hynix currently hold around 70% of the global market share.

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