South Korea has a plan to dominate in memory chips and robotics. One of a billion dollars

South Korea has put on the table a megaproject for the AI ​​era. This is an initiative made up of three public-private projects spread across semiconductors, data centers and the promising industry of “physical AI”, that is, robots and autonomous systems. The advertisement seeks something very specific: that the country does not depend only on selling memory, but on manufacturing other physical products that it anticipates will be consumed massively.

Memory chips rule. The largest item of this ambitious plan is, as we all expected, the one destined for the country’s semiconductor industry. Samsung and SK Hynix have committed to investing $585 billion in new manufacturing plants in the southeast of the country, in addition to strengthening factory construction in the Seoul region. They want to double the production of DRAM memories in five years.

The future belongs to data centers. The second large part of this plan corresponds to the data centers that are precisely going to take advantage of a large part of those memory chips. SK Group, CS Group and Naver will invest $357 billion to build large-scale AI data centers in areas until now far from the country’s technology centers. According to the Ministry of Science, the final ambition is to achieve a combined capacity of 18.4 GW by 2035, which would make South Korea one of the world’s great AI “nodes.”

Robotics, of course. More surprising is the third leg of the plan: the South Korean government has declared that “physical AI” is a “national strategic industry.” These systems, which allow robots or autonomous vehicles to interact with the real world, also want to be part of the future of the country’s technology industry. In three years they want to create a foundational AI model with the philosophy of “models of the world“—the same in which Yan LeCun or Fei-Fei Li work—.

Hyundai has its own plan. The South Korean auto industry giant has set aside $5.8 billion to create a robot manufacturing plant and data center. It’s no coincidence: Hyundai is in fact the parent company of Boston Dynamics since 20221, and is already using its local supply chain to help the American company increase production of its Atlas humanoid robot. The goal: build 30,000 units per year in 2028.

Humanoid robots in factories. South Korea wants to commercialize humanoid robots in several key industries before 2028, and to achieve this it wants to train the people who will work with them. The joint plan includes a section that talks about training 10,000 new “AI robotics specialists” in the next five years.

But. The announcement coincides with an important internal debate: there are political proposals that seek distribute part of the extraordinary profits of the chip manufacturers, and the unions already see the imminent threat of robotics that will replace positions in all types of assembly chains. The opposition to the South Korean government has also criticized the location of these new production centers, which according to them respond more to a political calculation than to a good industrial strategy.

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