South Korea is all set to strengthen its leadership in Artificial Intelligence (AI) and humanoid robotics. And in order to achieve this goal, the government has decided to spend more than a whopping $1 trillion. Yes, that’s true! Now, we all know that it’s a major investment and the government, of course, needs support. And that’s exactly why some of the giant companies of the country, including Samsung, SK Hynix, Hyundai Motor Group, SK Group, GS Group, and Naver, have joined hands with the government.

The president of South Korea, Lee Jae Myung, announced the news on a televised event on June 29. During the event, he said that semiconductors, physical AI, and AI data centers are three basic pillars of the country’s upcoming industrial development. The main goal of this plan is to increase the production of memory chips and build a massive AI infrastructure. And guess what, according to the government of South Korea, one of the most important parts of the plan is to speed up the commercial deployment of humanoid robots by 2028.

Samsung, SK Hynix to Expand Memory Chip Production 

As per the plan, the largest amount will be spent on semiconductor manufacturing. Samsung and SK Hynix are aiming to spend billions of dollars on new chip fabrication plants and packaging facilities. The government’s goal is to double South Korea’s DRAM production in the next 5 years. Do you know what this expansion means? Well, this means that the country’s position as the biggest supplier of AI memory chips will strengthen even more. 

These chips are in high demand for AI servers and data centers. This has, of course, put pressure on supplies of advanced AI memory. So what could be a better time for this announcement? However, as per some industry leaders, building new fabrication plants is not a matter of days. In fact, it’s a long-term effort, which means the new chip supply will take years to reach the market.

AI Data Centers and Physical AI 

South Korea is investing heavily in AI infrastructure, too. SK Group, GS Group, and Naver will lead the development of large-scale AI data centers across several provinces. The goal is to support AI development in the country. It will also reduce the need to rely on cloud infrastructure from other countries. The government says these projects could provide more than 8 gigawatts of AI computing capacity in the future.

The government has also designated physical AI as a national strategic industry. Officials want South Korea to develop a domestic general-purpose AI foundation model capable of powering robots and autonomous systems. Plus, the country also plans to expand AI robotics research in the coming years.

Hyundai Targets Large-Scale Humanoid Robot Production 

Another super important part of this initiative is humanoid robotics. Hyundai Motor Group will invest about $5.8 billion in a robot manufacturing facility and AI data center in the Saemangeum region. This major investment will support the production of Boston Dynamics’ Atlas humanoid robot. The purpose of the company is to manufacture 30,000 Atlas robots each year by 2028.

The government of South Korea also plans to deploy humanoid robots in 10 major industries by 2028. And not only this, but the government also aims to train 10,000 AI robotics specialists in the coming 5 years. But why? Well, the reason is obvious. And that is to make South Korea a global leader in physical AI by 2030.

Challenges Remain Despite Ambitious Goals 

Although the plan is massive, it is worth noting that there are many challenges that might get in the way of its completion. There’s a high chance that these obstacles might slow down the speed of the process. Wondering what type of challenges? First things first, new semiconductor plants and AI data centers will require a lot of electricity. And as per analysts, such major projects take years to complete.

Moreover, the project may face labour issues as well. Since Hyundai Motor is planning to bring in more humanoid robots in action, Hyundai Motor’s labor union has approved potential strike action. And the reason why they are opting for a strike is the fear of losing their jobs.

But if the plan proves to be successful, South Korea could change the global AI supply chain. The country is bringing together memory chips, AI data centers, and humanoid robots under one national program. This could make South Korea a stronger leader in the future of AI technology.