The government is stepping up efforts to strengthen competitiveness in the artificial intelligence (AI) semiconductor industry and has started moving in earnest on the 'K-Nvidia fostering project'. It aims to inject large-scale funds through the National Growth Fund and seek to secure leadership in the global market.

The Ministry of Science and ICT and the Financial Services Commission held a joint public-private meeting in Seoul on March 17 with the Korea Development Bank and domestic AI semiconductor companies to push the K-Nvidia fostering project. The meeting was arranged to discuss investment strategy using the National Growth Fund in connection with the project and to rally commitment to public-private cooperation.

The science ministry announced an 'AI semiconductor industry leap strategy' in December last year. The strategy focuses on nurturing the AI semiconductor ecosystem in the short term around low-power, low-cost neural processing units (NPUs) in line with the AI inference market.

The science ministry proposed to the financial regulator a K-Nvidia fostering project to support the design and production of domestically made AI semiconductors as one of the strategy's tasks. The Financial Services Commission included the K-Nvidia fostering project when it selected and announced seven first-round mega projects for the National Growth Fund.

At the meeting, the science ministry presented its plan to foster the AI semiconductor industry ecosystem and the low-power, high-efficiency domestic NPU industry. Park Tae-wan (박태완), director general for ICT Industry Policy, stressed that large-scale capital injection is essential for domestic NPU technology to secure leadership in the global market and that concentrated investment linked to the National Growth Fund must support it.

The Financial Services Commission then presented an operating plan for the National Growth Fund, which it said would be formed at a total of 150 trillion won over the next five years, as well as the need for investment in AI and semiconductors and its support strategy. It also shared investment strategies by stage, covering initial infrastructure building, operations and maintenance, and a plan to invest a total of 10 trillion won in AI and semiconductors this year.

Chief executives of AI semiconductor companies including Rebellions, FuriosaAI, Hyperaccel, DeepX and Mobilint introduced technology development roadmaps for ultra-low-power, high-performance next-generation NPU products and presented strategies to target the global AI market reshaped around GPUs. The companies stressed the importance of large-scale investment through the National Growth Fund to secure a golden time window for entering global markets.

Korea Development Bank Chairman Park Sang-jin (박상진) said the AI semiconductor industry is a key strategic field that will determine future national competitiveness. He stressed that preemptive and sustained funding is crucial in a global environment where technology competition is accelerating.

Financial Services Commission Chairman Lee Eok-won (이억원) said as he wrapped up the meeting that the National Growth Fund was designed to foster advanced strategic industries and create regional jobs while sharing results with the private sector. He said the government would do its best to deliver AI industry outcomes that the private sector can feel through the fund, including fostering K-Nvidia and building a national AI computing center.

Bae Kyung-hoon (배경훈), deputy prime minister and minister of science and ICT, said the massive engine of South Korea's AI industry can operate properly when AI policy and finance mesh closely like gears. He said the science ministry and the Financial Services Commission would work closely as one team so companies do not miss the golden time window to take the global market.