As Taiwan moves to become an AI hub, where does Korea stand?

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As Taiwan moves to become an AI hub, where does Korea stand?

Published: 21 May. 2025, 00:00 Updated: 21 May. 2025, 14:14

Audio report: written by reporters, read by AI

Nvidia CEO Jensen Huang delivers a speech during Computex 2025 in Taipei, Taiwan, on May 19. [AP/YONHAP]

In the intensifying global race to lead artificial intelligence (AI) development, Korea risks being left behind. On May 19, Jensen Huang, CEO of Nvidia — the world’s largest AI chipmaker — announced plans to establish Taiwan as a major AI hub. His company will build its first AI supercomputer there, alongside a new headquarters and a research institute focused on chip design and quantum computing.

This vision to turn Taiwan into a self-sustaining AI ecosystem is more than a marketing pitch. The project involves Taiwan’s key players: Nvidia, TSMC, Foxconn and the National Science and Technology Council (NSTC). It is a full-fledged national initiative.

Unlike most countries, Taiwan is not starting from scratch. It already has a robust supply chain spanning from semiconductor design to hardware manufacturing. MediaTek, the world’s top maker of AI application processors, and Quanta Computer and Wistron Corporation, dominant players in AI server manufacturing, are all Taiwanese firms. Huang acknowledged this in his remarks, stating, “Without the ecosystem built by 150 Taiwanese companies, it would have been impossible to turn Nvidia’s designs into real products.”

Taiwan’s emergence adds new complexity to the ongoing AI rivalry between the United States and China. Yet Korea’s position in this contest is increasingly uncertain. While it leads in certain areas like high bandwidth memory, its overall AI infrastructure — particularly in design, software, packaging, data centers and power supply — remains insufficient. There is a growing fear that Korean firms, such as Samsung Electronics and SK hynix, may be relegated to the role of subcontractors in the global AI value chain.

Despite this, Korea lacks a coherent national strategy to compete in the AI race. Presidential candidates have offered slogans but no clear or actionable plans. While large budget pledges are being made, they often lack integration with broader industrial or energy strategies. In contrast to Taiwan’s whole-nation approach, Korea’s vision remains fragmented.

As Korea’s economic growth continues to slow, securing new growth engines like AI is not optional — it is essential. The implications extend beyond the economy to national security and global competitiveness. But time is running out. Competitor nations are moving quickly and decisively.

A model of SK hynix's high bandwidth memory technology is displayed during the World IT Show at Coex in southern Seoul on April 25. [AP/YONHAP]

Korea needs a nationwide road map for AI ecosystem development. This must include deregulation to promote innovation, expansion of the power grid to support large-scale computing infrastructure, and targeted government support in research and development, talent training, and strategic investment.

If Korea hopes to remain relevant in the era of AI, its leaders must look beyond slogans and deliver a tangible, unified strategy. That is what national leadership requires.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.