South Korea Launches ‘K-Nvidia’ Strategy to Fund Domestic AI Chipmakers
South Korea is pursuing its “K-Nvidia” initiative to reduce its reliance on overseas GPU suppliers for AI computing. A public-private National Growth Fund managed by the Korea Development Bank plans to raise a total of 150 trillion won ($102 billion), with a focus on domestic NPU companies capable of mass production, strengthening chip supply autonomy and international customers’ confidence.
On March 17, 2026, FuriosaAI and Rebellions became the first investment candidates in the semiconductor sector. FuriosaAI began mass production of its 5-nanometer Renegade chip in January, while Rebellions started mass-producing its 4-nanometer RebelQuad in February. The government met with three other companies the same day, but the final list of beneficiaries and individual investment amounts remain subject to review by the investment committee and the fund management committee.
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The history behind this eventSouth Korea Moves to Accelerate $576 Billion Chip and AI Investment Plan
South Korea has designated semiconductors and artificial intelligence as national strategic industries as it seeks to maintain its lead amid intensifying global chip competition and rising demand for AI computing power. President Lee Jae-myung has instructed the government to remove bottlenecks involving administrative approvals, electricity and water supplies, ensuring that long-term investments by companies including Samsung Electronics and SK Hynix proceed on schedule.
As of July 20, 2026, Lee had ordered officials to accelerate chip and AI projects worth a combined $576 billion, stressing that speed is critical in the industrial race. Samsung Electronics and SK Hynix plan to invest in new chip production hubs and AI data centers, while the government must complete the necessary power, water and transportation infrastructure in parallel.
South Korea Formally Approves 800 Billion Won Automotive and Edge AI Chip R&D Plan
The South Korean government is pursuing its K-Automotive and Edge AI Semiconductor Technology Development project, targeting low-latency, low-power computing for vehicles, the Internet of Things and robots. The project aims to complete customized AI chips and software by 2030, reducing reliance on overseas technology and expanding South Korea’s semiconductor footprint.
The government recently formally approved the R&D project with a total budget of 800.2 billion won for chip design, software and application validation. Because the approved funding was cut from the amount originally planned, the industry is concerned about whether the technology can enter mass production and commercial use by 2030. Corporate participation and market adoption will be key areas to watch.
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