South Korea

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South Korea Unveils National Strategy to Lead Global AI Semiconductor Race
Dec. 11, 2025 | Technology & Innovation

South Korea is charting an ambitious path to solidify its leadership in semiconductor technology and policy amid the global AI race.

**On December 10, 2025, President Lee Jae-myung convened a high-level briefing at the Yongsan Presidential Office in Seoul under the theme “K-Semiconductor Vision and Development Strategy in the AI Era.” The briefing brought together key government figures and roughly 40 leaders from industry, academia and research institutions, including representatives from Samsung Electronics and SK Hynix.**
It stressed the dual role of the semiconductor sector as an engine of economic growth and a pillar of national security as global rivalry in AI technologies intensifies.

**The government set strategic objectives to secure South Korea’s place among the world’s top two in both memory and foundry by preserving an “ultra-gap” technological edge.**
It aims to increase domestic fabless semiconductor revenue tenfold and achieve technology and production sovereignty through the development and commercialization of next-generation memory solutions and neural processing units. The plan also calls for strengthening system semiconductor capabilities—especially on-device AI chips—and for achieving self-reliance in defense-grade semiconductors.

**To support these goals, the strategy launches a Global No 1 Development Project to reinforce supply chains for materials, parts and equipment.**
It calls for opening semiconductor-focused graduate schools to build a larger skilled workforce and for creating a Southern Region Innovation Belt to expand the nation’s semiconductor ecosystem. During the briefing, participants discussed changes in the AI-driven industry, plans to increase production capacity and the need to cultivate a robust AI semiconductor technology and ecosystem.

**On December 11, President Lee will meet with business executives from Samsung Electronics and SK Hynix, government officials and industry experts to refine strategies for advancing the semiconductor sector, with a particular focus on AI chip development.**
The session aims to address rising global competition for AI technology leadership through a coordinated national strategy.

**Industry Minister Kim Jung-kwan will present an integrated government roadmap that emphasizes strengthening manufacturing capabilities in memory and foundry, expanding the nation’s role in chip design and accelerating next-generation semiconductors tailored to AI model requirements.**
The presidential office framed the global AI contest as a semiconductor-centered technology battle, prompting President Lee to mobilize national resources directly to bolster the industry.
US Approves Nvidia H200 AI Chip Exports to China in Strategic Shift of Semiconductor Policy
Dec. 11, 2025 | Geopolitics & Defense

The United States has granted permission for the export of Nvidia’s H200 AI chip to China, ushering in a new phase of semiconductor trade dynamics.

**The United States approved the export of Nvidia’s H200 AI chip to China, partially relaxing the 2022 restrictions.**
Former President Donald Trump announced the deal on December 8, 2025, allowing Nvidia, AMD, Intel and other American firms to sell the H200 under conditions designed to protect national security. This represents the first approval for such an advanced AI processor since the 2022 export controls took effect.

**Based on the 2023 Hopper architecture, the H200 delivers roughly twice the inference performance and six times the AI training power of the earlier H20 chip.**
US officials excluded more advanced Nvidia products—those built on the Blackwell architecture and the forthcoming Rubin family—from the arrangement. By permitting exports of this earlier-generation, high-performance chip, policymakers aim to preserve a technological lead without forfeiting access to lucrative sales.

**Under the agreement, Nvidia must remit 25 percent of its China-derived revenues from H200 sales to the US government, up from an initial 15 percent proposal.**
The government will allocate these funds to bolster domestic job creation and semiconductor manufacturing, balancing export facilitation with continued economic and security interests in strategic technology.

**South Korean suppliers SK hynix and Samsung Electronics stand to gain from increased H200 orders, as both companies produce the eight-layer HBM3E high-bandwidth memory modules integral to the chip’s performance.**
China’s mandate favoring domestically produced semiconductors may limit H200 imports, depending on Beijing’s policy toward foreign hardware deployment versus homegrown alternatives.

**Observers view this approval as a strategic shift in Washington’s competition with China in AI and semiconductors.**
Nvidia CEO Jensen Huang says selling chips to China reinforces US market influence and deepens Chinese reliance on American technology. The decision reflects a belief that US leverage over China’s chip capabilities has weakened after advances by firms such as Huawei. It also aligns with the more conciliatory climate ahead of the planned April 2026 US-China summit, using exports and financial terms to shape broader technology relations.

Monitored Intelligence for South Korea - Dec. 12, 2025


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S. Korea confirms 2 additional highly contagious bird flu cases

Yonhap | English | News | Dec. 12, 2025 | Epidemics and Pandemics

South Korea reported two additional cases of highly pathogenic avian influenza on December 10, 2025, bringing the total number of infections at poultry farms this season to 10. The new infections were confirmed at a layer chicken farm in Cheonan, South Chungcheong Province, and another in Anseong, Gyeonggi Province.

Agricultural authorities are implementing follow-up measures including entry controls, culling of affected poultry, and epidemiological investigations. The agriculture ministry has called on farms to strengthen quarantine measures to prevent further spread of the disease, particularly in the Gyeonggi and South Chungcheong provinces where multiple cases have been reported this season.

Disinfection efforts are underway near affected farms, including a duck farm in Yeongam County in the southwest, following an outbreak there on December 9, 2025.

Taiwanese president urges Korean gov't to change country's designation on arrival card

Joongang Ilbo | English | News | Dec. 12, 2025 | UndeterminedPolitical Policy Resistance

Taiwan has escalated its protests against South Korea’s designation of Taiwan as “China (Taiwan)” on Korea’s new electronic arrival card system introduced in February 2025. Taiwan’s Foreign Ministry warned it would review its relationship with Korea, and President Lai Ching-te personally urged the Korean government to amend the label, emphasizing the close trade and people-to-people ties between the two countries. Seoul has not yet provided an official response.

Taiwan’s Deputy Foreign Minister Chen Ming-chi also condemned the designation, calling it an unfriendly measure given Korea’s significant trade surplus with Taiwan. Taiwanese lawmakers from multiple parties criticized the move, with some suggesting it reflects Seoul’s shifting stance toward China. However, Taiwanese tourism stakeholders cautioned against damaging relations, noting the economic importance of Korean visitors.

China supported Korea’s position, with a spokesperson reiterating the One China principle and dismissing Taiwan’s protests as political maneuvers by the ruling Democratic Progressive Party (DPP). Taiwan’s representative office in Seoul has raised the issue several times, but Korea has yet to provide a satisfactory resolution.

반도체 설계전문 ‘팹리스’ 10배로…광주·부산·구미엔 혁신벨트

Fabless Semiconductor Design Specialists Increase Tenfold… Innovation Belts in Gwangju, Busan, and Gumi

Maekyung | Local Language | News | Dec. 12, 2025 | UndeterminedTech Development/Adoption

The South Korean government announced a comprehensive semiconductor industry development strategy aimed at expanding domestic production capacity and strengthening system semiconductor capabilities, which have been identified as weaknesses. The plan includes fostering the materials, components, and equipment (so-bu-jang) sector, decentralizing the semiconductor industry from the Seoul metropolitan area to provinces, and building a southern innovation belt connecting Gwangju, Busan, and Gumi with regionally specialized ecosystems.

The Ministry of Trade, Industry and Energy revealed an AI-era semiconductor strategy that seeks to establish semiconductor sovereignty, develop next-generation memory and AI semiconductors, and enhance ecosystem collaboration among fabless design companies, foundries, and demand-side firms. The government plans to invest approximately 1.27 trillion won through 2030 on AI-specialized semiconductors and provide additional funding for next-generation memory, compound semiconductors, and packaging technology. The strategy includes creating public funds to support fabless companies, promoting domestic procurement by public institutions, and pursuing technological self-reliance, especially in defense semiconductors.

Domestic semiconductor production capacity is projected to increase significantly, with industry investment expected to exceed 700 trillion won by 2047, targeting a world-leading production capacity of 7.9 million wafers per month. Regulatory easing and infrastructure support, including stable power and water supplies, will be prioritized to facilitate growth. Talent development is also a focus, with plans to expand specialized graduate programs and establish a "Graduate School of Semiconductor Studies" to produce skilled researchers.

President Lee Jae-myung emphasized the importance of balanced regional development and cooperation between large corporations and SMEs. He advocated for relocating semiconductor clusters to southern regions, citing abundant renewable energy resources and lower electricity costs, which could reduce production expenses. The President underscored that the growth of the semiconductor ecosystem should benefit a wide range of companies to ensure sustainable industry development.

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