Search results
2,754 results
-
Japan Emerges as a Key Hub for Semiconductor Production and R&D Japan is re-emerging as a global hub for semiconductor production and research and development (R&D). Analysts suggest that the ecosystem of materials, components, and equipment is a strong enough incentive to overlook the risks posed by earthquakes.According to industry sources, Samsung Electronics has opened a next-generation semiconductor packaging R&D center in Minato Mirai, Yokohama. The company plans to invest 40 billion yen (approximately $329 million) by 2028, with half of that amount supported by the Japanese government. A total of 95 researchers from South Korea and Japan will work at the facility, which aims to expand joint development with local materials and equipment companies and research institutions.SK Hynix is also considering establishing a factory in Japan. Local media have reported on the potential for a memory production base in Japan, following discussions in February and again last month. While SK Hynix denied the rumors in February, it acknowledged last month that it is exploring various options, including securing additional production bases, although no decisions have been finalized. Chey Tae-won, chairman of SK Group, has indicated that he is reviewing multiple candidate sites in Japan, suggesting that the investment discussions are serious.Some argue that Japans frequent earthquake risks make it an unsuitable location for semiconductor factories. A 7.1 magnitude earthquake struck Kumamoto on July 28, causing TSMCs subsidiary JASM and production facilities of Sony and Renesas to halt or reduce operations.However, many view the earthquake risk as manageable. TSMCs Kumamoto plant resumed normal production on August 3 after equipment inspections. Sony significantly shortened its recovery time from the 2016 earthquake, which had taken over three months, thanks to improved seismic reinforcement and repeated training based on past disaster experiences.Japans competitive edge in semiconductor materials, components, and equipment is a significant advantage. According to data from Japans Ministry of Economy, Trade and Industry, Japanese companies hold 31% of the global semiconductor manufacturing equipment market and 48% of the major materials market. Shin-Etsu Chemical and SUMCO are among the top two global suppliers of silicon wafers, while Tokyo Ohka Kogyo is a leader in photoresists. Ajinomotos subsidiary supplies about 95% of the global market for advanced packaging substrate insulation materials.In the era of AI semiconductors, the importance of proximity in collaboration has increased. As it becomes more challenging to enhance performance solely through advanced processes, the utility of high-bandwidth memory (HBM) and advanced packaging that combines multiple chips has grown. The need for chip manufacturers and materials and equipment companies to align material properties and processes from the early stages of development has heightened the value of research hubs close to suppliers. This industrial shift is cited as a reason for Samsungs decision to expand its packaging R&D base in Japan before establishing production lines.The Japanese governments support is also a crucial factor. The Yokohama research centers investment is half funded by the government. Japan has allocated up to 732 billion yen in support for TSMCs second Kumamoto plant and plans to invest over 10 trillion yen in public support for the AI semiconductor sector by 2030. This strategy aims to attract foreign companies, connect them with domestic suppliers, and stimulate further related investments.The supply chain conflict between South Korea and Japan, which arose from Japans export restrictions on semiconductor materials in 2019, has also shifted. The two countries normalized related regulations in 2023. While the risk of concentrating supply chains in one country remains, industry experts emphasize that as AI competition accelerates, the speed of joint development with necessary materials and equipment companies has become increasingly important.Kim Yang-pyung, a senior researcher at the Korea Institute for Industrial Economics and Trade, stated, The semiconductor industry has limitations in processing all operations within a single country, unlike in the past. We must explore growth strategies through collaboration with Japan.* This article has been translated by AI. September 9, 2026 1 -
New Agreements Needed for CPTPP Membership "If Mexican agricultural products come in, our farmers will face even more difficulties. While it is said to be necessary for the development of the Korean economy, I fear that the measures for farmers will be mere window dressing, just like during the Korea-China Free Trade Agreement (FTA) negotiations."This was the sentiment expressed by an agricultural industry representative during a recent meeting. The agricultural sector is closely monitoring the governments push for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Following a press conference attended by hundreds of farmers, large-scale protests are also being considered.The discussion was ignited by Minister of Trade, Industry and Energy Kim Jeong-kwan, who stated during a presidential briefing on August 4 that the government would consider joining the CPTPP to secure new markets in ASEAN and Mexico and to expand exports of K-content. He further formalized the discussion at a forum, asserting, "It is rather strange for a trading nation like Korea not to join the CPTPP."The agricultural sector, which had felt relieved after successfully blocking agricultural imports during tariff negotiations with the United States, was taken aback. Joining the CPTPP could allow agricultural and fishery products from countries without an FTA with Korea to enter at lower tariffs. Since Korea has not signed an FTA with countries like Mexico among the CPTPP members, there are concerns that products such as Mexican peppers and avocados could enter Korea duty-free.The potential acceleration of market opening during the CPTPP membership process is also heightening farmers concerns. The CPTPP has a higher rate of tariff elimination for agricultural products among member countries compared to existing FTAs, and it is more challenging to set exceptions. This raises fears that the impact on farmers could be greater than that of past bilateral FTAs.The concerns of the agricultural sector regarding CPTPP membership appear to be valid. Recent analyses suggest that the decrease in agricultural production could be greater than during the 2022 discussions on CPTPP membership, as the number of member countries and the scale of trade have both increased since then. Additionally, the fact that the fund for rural cooperation established during the Korea-China FTA negotiations only raised about 30% of its target amount remains a significant concern. This has led to widespread skepticism in the agricultural community about the effectiveness of any proposed measures.However, many experts believe that Koreas membership in the CPTPP is inevitable. Free trade agreements are seen as one of the avenues to maximize exports. Notably, Mexico is a key export market for major Korean products such as automobiles, auto parts, steel, and machinery, and it could serve as a gateway for Koreas entry into North America. This could signal a new direction for the Korean economy in search of growth engines beyond semiconductors.The economic benefits are also expected to be substantial. The Korea Institute for International Economic Policy (KIEP) previously analyzed that joining the CPTPP could increase Koreas real GDP by 0.33% to 0.35% and consumer welfare by $3 billion. The Korea Institute for Industrial Economics and Trade also projected that Koreas net exports could increase by an average of $600 million to $900 million annually over 15 years if it joins.Nevertheless, there should be no agreements that sacrifice the agricultural sector unilaterally, as it is a vital national industry responsible for the countrys food supply. Practical safety measures must be established to minimize the damage to farmers from market opening. The previous voluntary contributions to the rural cooperation fund have proven ineffective.There needs to be a new agreement that can be legislated. Currently, the United States is pushing for the Farm, Food, and National Security Act to elevate agriculture as a national industry. The Korean government can learn from this. If it pursues legislation and corresponding policies, persuading farmers may not be as difficult as it seems.Some experts emphasize the need to treat farmers like quasi-public servants. Given the importance of agriculture in the era of climate crisis, the government should more actively support their livelihoods, with suggestions including increasing direct payments.The significance of agriculture is growing in the context of the climate crisis. It is widely recognized that enhancing food self-sufficiency is crucial to avoid being swayed by external variables. If trade is restricted to protect farmers, economic growth could be hampered. It is essential to devise new measures for the development of the agricultural sector while also ensuring the creation of national wealth. Membership in the CPTPP is no longer a matter of avoidance or delay.* This article has been translated by AI. September 9, 2026 1
-
Samsung and Naver Enter European Sovereign AI Market Through MistralAI Samsung Electronics and Naver have jointly entered the European sovereign artificial intelligence (AI) market through the French company MistralAI. This move is seen as a significant addition to the global AI competition, traditionally dominated by the U.S. and China, with South Korean companies establishing a third pillar centered in Europe.According to the IT industry on September 9, Samsung Electronics and Naver Cloud formed a partnership with MistralAI during a Korea-France business roundtable held at the Élysée Palace in Paris on September 8.Samsung Electronics signed an investment agreement with MistralAI under the name of Vice President Lee Jong-myung, while Naver agreed to explore joint global market entry strategies based on their partnership targeting the sovereign AI market.The investment led by Samsung Electronics is part of MistralAIs Series D funding round, raising €3 billion (approximately 4.7 trillion won). This is the largest equity investment ever secured by a European tech company, pushing MistralAIs valuation beyond €21 billion (about 33 trillion won). Samsung led the round in collaboration with the EUs ScaleUp Europe Fund and existing investor PSG Equity, with new investors Advent and the Grand Duchy of Luxembourg joining, while ASML, NVIDIA, and Salesforce Ventures participated as existing investors.Samsungs investment goes beyond mere equity acquisition. MistralAI is expanding its business scope beyond model and inference services to include its own computing infrastructure. As a supplier of semiconductors and memory, Samsung stands to benefit directly as demand for AI infrastructure in Europe grows. Analysts in the investment banking sector suggest that this round is more of a strategic investment aimed at securing semiconductor demand due to the expansion of AI infrastructure in Europe rather than just a financial investment.Navers approach differs from that of Samsung. Naver Cloud had already established a comprehensive partnership with MistralAI in the manufacturing AI sector on July 8. This recent agreement extends their collaboration beyond manufacturing to encompass the entire global sovereign AI business. MistralAI has built a strong reference base with major European manufacturers such as Airbus, BMW, and ASML, and Naver plans to integrate its cloud infrastructure with these references to achieve success in domestic manufacturing before expanding into global markets.When viewed together, the two agreements reveal a dual-track strategy for South Korean companies entering Europe, focusing on capital and business. Samsungs strategy involves securing access to MistralAIs growth and semiconductor demand through equity investment, while Naver aims to transplant proven industrial AI use cases validated in Europe into domestic and international markets through cloud and infrastructure collaboration. This structure allows for simultaneous entry into the European market through different axes of semiconductor hardware and cloud software with the same partner.MistralAI is recognized as a leading independent supplier representing Europe in the AI model market, which has been dominated by U.S. tech giants like OpenAI and Google, as well as Chinese companies like Alibaba. With Samsung and Naver combining their capital and business interests with MistralAI, South Korea is positioning itself to expand its own collaborative axis outside the U.S.-China-centric AI competition, leveraging its semiconductor and infrastructure competitiveness.Lee Jong-ho, a professor at Seoul National University and former Minister of Science and ICT, stated, “It is very appropriate for South Korea to collaborate with a leading European company to effectively compete in the AI sector without necessarily excluding or countering the U.S. and China. The important thing is to establish a third-tier AI capability.” September 9, 2026 1
-
KOSPI Recovers 7000 Points After 34 Trading Days, Boosted by AI and Semiconductor Stocks The KOSPI index has reclaimed the 7000-point mark for the first time since July 23, recovering after 34 trading days. On September 9, the index closed at 7051.64, up 1.40% from the previous trading day, driven by gains in artificial intelligence (AI) and semiconductor stocks. Despite external challenges such as rising oil prices from the Middle East and increasing U.S. Treasury yields, institutional investors net buying of over 900 billion won absorbed significant selling from individual investors.According to the Korea Exchange, individual and foreign investors sold a net 2.4971 trillion won and 170.2 billion won, respectively, while institutions purchased a net 900.5 billion won. The KOSDAQ also rose, closing 2.28% higher at 830.37.Semiconductor stocks led the markets rise, with the Philadelphia Semiconductor Index (SOX) increasing by 1.3% overnight, marking its fourth consecutive day of gains. SK Hynix saw a 3.51% increase, fueled by ongoing expectations for AI growth and memory demand, which also benefited companies like Samsung Electro-Mechanics, which rose by 2.48% as part of the AI infrastructure value chain.According to Kang Jin-hyuk, a researcher at Shinhan Investment Corp, As top-down and bottom-up factors are in a tug-of-war, we saw a rebound in buying following the previous days decline, alongside strong performance in AI infrastructure. The momentum from GPT-6 Astras memory continues, leading to strength in the AI value chain centered around Samsung Electronics and SK Hynix.The upward trend that began in semiconductors spread across various sectors. Stocks in secondary batteries, such as Samsung SDI (up 8.30%) and LG Energy Solution (up 6.46%), gained on expectations of benefiting from U.S. measures against Chinese battery companies. Additionally, Hanwha Oceans announcement of being selected as the preferred bidder for a 680 billion won Thai frigate project boosted shipbuilding stocks, while rising oil prices led to gains in refining and chemical stocks like SK Innovation (up 11.23%) and S-Oil (up 4.08%).Market analysts believe that despite ongoing external uncertainties, the performance and demand momentum of AI-related stocks will provide upward momentum for the domestic stock market. They are particularly focused on whether the KOSPI can stabilize above the 7000-point level as sector-specific positive news leads to a rotation of investments.Lee Kyung-min, a researcher at Daishin Securities, stated, Despite unstable external conditions, the growth potential and demand momentum of AI have acted as upward pressure on related sectors. The rotation of investments based on sector-specific positive news has led to a differentiated market performance.In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1336.1 won, down 9.5 won from the previous trading day.* This article has been translated by AI. September 9, 2026 1
-
South Korea takes state-led route in AI race as latecomer SEOUL, September 09 (AJP) - America's biggest technology companies are preparing to pour roughly $725 billion into artificial intelligence infrastructure this year. South Korea cannot come close to matching that private-sector firepower. So Seoul is reaching for something Silicon Valley does not need nearly as much — the state balance sheet. The government's 2027 budget bill submitted to the National Assembly on Sept. 3 lifts spending on AI and three linked mega-projects by 97.2 percent to 21.3 trillion won ($15.8 billion), equivalent to about 2.6 percent of total government expenditure of 820.9 trillion won. Their share was about 1.5 percent this year. Gartner forecasts worldwide AI spending will reach $2.59 trillion in 2026, up 47 percent from a year earlier. The four biggest U.S. hyperscalers — Amazon, Microsoft, Google and Meta — alone plan around $725 billion in capital expenditure this year, up 77 percent from 2025, according to Value Add VC's tracker. Korea's wager is different. Private AI investment in the country came to a paltry $1.78 billion in 2025, compared with $285.9 billion in the United States, according to Stanford University's 2026 AI Index. Still, Korea ranked first globally in AI patents per 100,000 people, at 14.31, and third in notable AI models released. The mismatch points to the problem Seoul is trying to solve through state-led investment. Korea has technological capability, but the pools of private capital needed to scale it remain far smaller than in the United States. The treasury is moving to fill part of that gap. The 2027 money goes beyond R&D. It includes another 10,000 high-end graphics processing units, 3.1 trillion won for physical AI and roughly 2,000 domestically produced robots to be deployed in defense, policing, firefighting, care services and agriculture. Korea has reason to believe the factory floor could be its strongest AI battlefield. It already has the world's highest industrial robot density, with 1,220 robots for every 10,000 manufacturing workers, according to the International Federation of Robotics. Singapore is second at 818, while Germany and Japan have 449 and 446, respectively. If Korea cannot match the United States in software capital or China in industrial scale, Seoul is betting that it can compete where AI meets manufacturing. China illustrates the size of the challenge. It installed 295,000 industrial robots in 2024, accounting for 54 percent of all installations worldwide, and operates roughly 2 million robots, according to the IFR. South Korea is therefore trying to combine its semiconductor and automation strengths with a government-financed AI layer. AI colleges will expand from KAIST to all four national science and technology institutes, alongside new industry-linked graduate programs. The science ministry's budget rises 24.5 percent to a record 29.6 trillion won next year. Deputy Prime Minister and Science Minister Bae Kyung-hoon, who oversees 9.4 trillion won of the ministry's budget, has framed physical AI as an export strategy. Korea will "export the Republic of Korea's factories to the world" on a homegrown physical AI platform, he told a fiscal strategy meeting at the presidential compound in June. The budget push sits inside a much larger corporate investment drive unveiled by President Lee Jae Myung that month. Samsung Electronics, SK hynix and suppliers plan about 800 trillion won in new semiconductor investment, including fabrication plants in southwestern Korea, while SK Group, GS Group and Naver are backing an initial 550 trillion won buildout of AI data centers. Those sums are corporate investment rather than direct government expenditure. Seoul is seeking to accelerate them through infrastructure, policy support and public investment. "We must secure the core elements of AI faster than any other country," Lee said in announcing the three mega-project strategy. Nvidia is another part of the buildout. Chief Executive Jensen Huang said his company had agreed to supply 260,000 GPUs to the Korean government and four conglomerates, describing Korea as "the only government that has directly purchased AI chips for national R&D." The supply would push Korea's chip stock above 300,000 units from about 65,000 and feed new computing infrastructure, including a 2.41 trillion won national computing center in Haenam that broke ground in August. The model stands in sharp contrast to the United States. Washington's AI leadership has largely been financed by corporations and venture capital, with federal spending concentrated on research, procurement and strategic programs rather than attempting to replicate hyperscaler investment. Japan has taken a more interventionist approach, setting aside about 1.23 trillion yen ($8 billion) for advanced chips and AI this fiscal year, while India's five-year IndiaAI Mission totals 103.72 billion rupees ($1.09 billion). China offers the closer parallel, having long used government guidance funds and industrial policy to direct capital toward semiconductors, AI and other strategic technologies. Seoul is also extending its strategy beyond chips and robots. The Ministry of Land, Infrastructure and Transport on Wednesday presented a "K-AI City" strategy in Busan that would apply AI to building permits, municipal control rooms and other urban functions. Wonju, Cheonan-Asan, Saemangeum and Gwangju have been selected as pilot areas. Land Minister Kim Yun-duk said the program would be judged by whether it made everyday life safer rather than by the sophistication of the technology itself, promising "a people-centered AI city, where technology is not the goal itself." Money, however, may not remain Korea's biggest constraint. Electricity is emerging as another. The semiconductor factories and AI data centers planned across the country could require an additional 25 to 30 gigawatts of power, roughly equivalent to the output of 20 nuclear reactors, Reuters reported Tuesday, citing government estimates. Nuclear power currently supplies nearly a third of Korea's electricity. The initial AI data-center plan alone calls for about 8.4 GW of capacity, backed by SK, GS and Naver, with another 10 GW envisaged by 2035. Korea may therefore find that financing GPUs and factories is easier than supplying them with enough electricity. There is also a fiscal vulnerability built into Seoul's strategy. National tax revenue is forecast to jump 49.8 percent next year, with the semiconductor upcycle creating much of the fiscal room for the government's spending expansion. The global AI boom is generating extraordinary profits and tax receipts from Korea's memory-chip industry. Seoul is recycling part of that windfall into an attempt to build a broader domestic AI industry. A reversal in the memory cycle would weaken both sides of the equation at once. For now, the government is treating the race as one Korea cannot afford to sit out. Ha Jung-woo, standing vice chair of the Presidential Council on National AI Strategy since Aug. 31, described it Tuesday as "an all-out national contest that decides industry, security and growth." Unlike the United States, where companies are financing most of that contest, Korea is making the government one of its biggest early investors. AJP Takeaways - Korea nearly doubles 2027 spending on AI and three linked mega-projects to 21.3 trillion won. - Private AI investment remains a fraction of U.S. levels despite Korea's strength in patents and notable AI models. - Seoul is betting heavily on physical AI, building on the world's highest industrial robot density. - Electricity demand and reliance on the semiconductor upcycle pose longer-term risks to the state-led strategy. September 9, 2026 1 -
Mirae Asset Securities' Park Hee-chan: Time to Pause Aggressive Investments The stock market in September is showing mixed trends. The momentum that pushed indices toward 10,000 has long dissipated, with factors such as war, interest rates, and exchange rates contributing to increased volatility. In this chaotic environment, experts are offering various investment strategies.Park Hee-chan, head of the product support division at Mirae Asset Securities, provided a clear diagnosis: Now is the time to pause aggressive investments. He noted that while the domestic stock market has risen rapidly, driven by artificial intelligence (AI) and semiconductors, high interest rates and corporate investment burdens are likely to sustain volatility for the foreseeable future.In a recent interview, Park, who has over 20 years of experience in macroeconomics and asset allocation at Mirae Asset Securities, emphasized the need for a balanced investment strategy. Rather than focusing on specific themes, it is essential to invest in indices centered around the U.S. and appropriately divide investments between stocks and bonds, he said. He clarified, This does not mean avoiding stocks altogether; within stocks, preference should be given to indices over individual themes, mixing various strategies to reduce volatility.Korean Stock Markets High Dependence on Semiconductors and AIPark highlighted the high dependence on semiconductors in the domestic stock market. He pointed out that while the U.S. S&P 500 and Nasdaq are also influenced by the performance of AI and semiconductors, their volatility is significantly lower compared to the Korean market. The U.S. has a diverse industrial and corporate structure, whereas in Korea, large-cap semiconductor stocks like Samsung Electronics and SK Hynix have an overwhelmingly large impact on the index, he explained.He added, Even if sectors like cosmetics or biotech show positive trends, they cannot offset the volatility of Samsung Electronics and SK Hynix. Ultimately, the movements of large-cap semiconductor stocks are crucial for the Korean stock market.Demand for AI is not expected to decline immediately, with memory demand likely to continue beyond 2027. However, Park emphasized that what determines stock prices is not just the absolute level of demand but the growth rate.Concerns surrounding the AI industry are also reflected in companies funding methods. He noted that while big tech companies managed large-scale capital investments using their cash flows in 2023-2024, interest in funding has increased since the second half of last year, particularly following Oracles example. As big tech companies begin to raise funds for AI investments through bond issuance and borrowing, the market is starting to evaluate how quickly these investments can translate into profits, he explained.Park warned that by 2026, Googles free cash flow could turn negative, and by 2027, more companies may follow suit. In a high-interest environment with increasing borrowing, the profitability of AI investments will become critical. He anticipates that discussions about whether AI has peaked will intensify after next year.Sustainability of Earnings More Important Than ValuationPark believes that the current stock market valuation does not appear overly burdensome. Based on projected earnings for 2026-2027, the price-to-earnings ratio (PER) is not excessively high.The concern lies beyond that period. He stated, While the current valuation looks fine, the market is curious whether earnings can remain at this level in 2028 and 2029. He cautioned that it is not enough to feel secure just because valuations are low in the presence of actual earnings. Ultimately, the sustainability of future profits must be assessed.His preference for U.S. stocks in asset allocation stems from this reasoning. It is not merely about return expectations but also about the higher level of trust in the market. Park remarked, There is a belief that even if something goes wrong in the U.S. market, it will eventually recover. Therefore, it is advisable to focus long-term asset allocation around the U.S.Foreign Investors Likely to Rebalance at KOSPI 7000-8000Regarding foreign investment, Park does not expect significant net buying in the short term. As the domestic stock market has risen rapidly, the proportion of Korean stocks in global portfolios has increased, leading foreign investors to sell for rebalancing.He noted, Currently, at the KOSPI 6000-7000 level, foreign investors are in a balanced state, neither buying aggressively nor selling significantly. However, if the index rises to 7000-8000, the situation could change. He explained that as the proportion of Korean stocks increases again, foreign investors may sell to rebalance their portfolios.Park added, Since the Korean stock market has already risen significantly, it will be difficult for foreign investors to increase their holdings unless other countries also rise, causing the relative weight of Korean stocks to decrease. This implies that for foreign investment flows to change direction, the global stock market must rise in tandem with the domestic market.High Interest Rates Favor Short-Term Bonds Over Long-TermInterest rates are also a crucial variable in future investment strategies. Park cited the expansion of fiscal deficits by developed countries and increased global investment as reasons for rising global interest rates.He explained that AI-related capital investments are absorbing global liquidity. When big tech and related companies issue bonds for AI investments, more funds become tied up in the market for extended periods, which can burden the bond market.Consequently, not all sectors benefit from rising interest rates. In a high-interest environment, growth stocks must also prove the profitability of large-scale investments. Park emphasized, I do not foresee a major crisis like a financial meltdown occurring immediately, but now is not the time for aggressive investments.Among sectors, he expressed a relative preference for consumer goods, which have strong defensive characteristics. Companies that do not require explosive growth may be more stable in a high-interest and volatile environment. In bonds, he favored short-term bonds over long-term ones, as rising interest rates could increase price volatility for long-term bonds.ELS, Gold, and Brazilian Bonds as Diversification ToolsIn a volatile market, equity-linked securities (ELS) can also serve as an investment alternative. As volatility increases, the conditions for ELS, such as coupons, may improve. He noted, Recently, some ELS linked to Samsung Electronics and SK Hynix have formed conditions with high coupons and significant levels of price decline tolerance. However, he cautioned that ELS can also incur principal losses if the underlying asset prices fall significantly, so it is essential to examine the structure carefully, and the investment proportion should not be too large.Gold and Brazilian bonds were also suggested as alternatives. Park stated, While the potential for U.S. interest rate hikes may pose a concern, global central banks, especially those in emerging markets, continue to reduce their dollar asset holdings and increase gold purchases. He mentioned that Brazilian bonds offer high interest rates of around 15% with no taxes, but they are also considered high-risk products.He advised, A good strategy might be to maintain a 60-40 split between stocks and bonds or adjust to a 50-50 ratio depending on market conditions. In a volatile environment like this, it is necessary to adopt an approach that grows assets steadily, even if it means lowering expected returns. September 9, 2026 1
-
Kioxia Dismisses Semiconductor Production Partnership with SK Hynix Kioxia, a Japanese NAND flash manufacturer, has dismissed rumors of a semiconductor production partnership with SK Hynix, as mentioned by SK Hynix Chairman Choi Tae-won.In an interview with Bloomberg News on September 9, Kioxia CEO Hiroo Ota stated that joint production with SK Hynix could violate antitrust laws and would be difficult to reconcile with Kioxias current collaboration with SanDisk.This response follows Chois comments in an Asahi Shimbun interview on September 2, where he described joint production with Kioxia as one option and praised Kioxia as a company with many strengths. He also indicated that various forms of collaboration, including R&D and supply chain sharing, could be possible.While Kioxia is currently producing key products in partnership with SanDisk, Chois remarks opened the door to potential new collaborations with SK Hynix. He noted, If SK Hynix is part of Kioxias future strategy, I am open to being a partner at any time.Ota also commented on the possibility of a tripartite collaboration among Kioxia, SK Hynix, and SanDisk, stating, It is not as simple as saying, Let’s produce together. I cannot speculate on why he made those comments.SK Hynix became Kioxias largest shareholder last month, leading to ongoing discussions about potential collaboration. Choi, who has advocated for economic cooperation between South Korea and Japan, has raised interest in the feasibility of joint production with Kioxia. Kioxia sources some of the DRAM used in its solid-state drives (SSDs) from SK Hynix.However, Bloomberg reported that an SK Hynix executive indicated that Chois comments about joint production were made in a general context.The discussion of joint production arises amid a global shortage of memory supplies driven by the surge in artificial intelligence (AI) demand. Kioxia, the worlds third-largest NAND flash manufacturer, saw its average NAND sales price rise by 70% in the second quarter compared to the previous quarter, and its stock price has surged 18-fold over the past year, making it the top company by market capitalization on the Japanese stock market in June.In response to concerns that rising prices could dampen investment enthusiasm in the AI sector, Ota instructed his sales team not to significantly increase prices. He emphasized the need for alternative solutions to address the soaring prices of memory semiconductors, stating, (NAND) prices have already risen sufficiently. If we excessively raise prices, we will ultimately harm our own market.Additionally, Ota expressed his commitment to focusing on developing technological capabilities that companies seek, rather than merely pursuing market share, in anticipation of competition from Chinas largest memory semiconductor company, YMTC (Yangtze Memory Technologies Co.). September 9, 2026 1
-
Samsung and SK Hynix Strengthen Global Semiconductor Alliances to Maintain Memory Leadership Samsung Electronics and SK Hynix are enhancing their collaboration with global semiconductor companies to maintain their leadership in next-generation memory technology. They are not just securing the latest equipment but are actively participating in technology development and standard-setting. This shift indicates that the competition to maintain a memory advantage is expanding from individual manufacturing capabilities to the entire global semiconductor ecosystem. Samsung has joined a large mask consortium led by ASML to expand the existing 6-inch photomask, which is used to engrave circuit patterns on wafers, to 12 inches. At the same time, it is pursuing the application of high-NA EUV technology for advanced DRAM mass production by 2028, becoming the first in the industry to do so. SK Hynix is also aiming to apply high-NA EUV for DRAM mass production in 2028 and is considering joining the 12-inch mask consortium. High-NA EUV is a next-generation lithography technology that can create finer circuits than existing EUV. Combining this with large masks can enhance productivity and reduce manufacturing costs. ASML and TSMC plan to establish a pilot production line for 12-inch masks by 2031 and prepare for full-scale production by 2033. Samsung and SK Hynixs early participation in this process signifies more than just equipment acquisition; it indicates their intention to play a leading role in shaping the standards and specifications for semiconductor manufacturing in the future. It is clear that South Koreas semiconductor industry possesses world-class manufacturing competitiveness. The accumulated process technology and mass production experience in memory fields such as DRAM and HBM are difficult to replicate. However, given Chinas rapid advancements, complacency is not an option. Chinese memory companies like CXMT and YMTC are quickly enhancing their production capacity and technological capabilities, backed by substantial government support. While a technological gap still exists between South Korea and China, the latters ability to build competitiveness based on its vast domestic market is a cause for concern. Moreover, the nature of semiconductor competition is changing. In the AI era, simply producing high-quality memory is no longer sufficient to maintain competitiveness. Advanced lithography equipment, materials and components, design, foundry, advanced packaging, and software must be interconnected within a single ecosystem. Collaboration with big tech companies developing AI semiconductors is now essential rather than optional. In the future, companies must go beyond merely supplying HBM and next-generation memory demanded by big tech; they need to collaborate from the early stages of product development, jointly designing new memory and packaging technologies. They must evolve from a customer-supplier relationship to become partners in technology development. The government must also actively support our companies to position themselves at the center of global cooperation networks through research and development and talent cultivation. It is urgent to streamline regulations to ensure domestic investments do not lag. While the government cannot create competitiveness for companies, it is responsible for creating an environment where they can compete. The memory advantage is not an eternal right. Technology changes rapidly, and competitors are constantly emerging. The methods for maintaining this advantage must also evolve. Samsung and SK Hynix must maintain their world-leading manufacturing competitiveness while closely connecting with global leaders like ASML, TSMC, and big tech to shape the direction of technology together. Companies that collaborate to define technological pathways will outlast those that try to lead alone. September 9, 2026 1
-
Fitch Ratings Positively Assesses South Korea's 2027 Budget Proposal Fitch Ratings has projected that South Koreas fiscal performance under the 2027 budget proposal will significantly improve compared to previous forecasts. The agency assessed that both the fiscal balance and national debt ratio will show a more stable trend, emphasizing the importance of investments in strategic industries such as AI and semiconductors to enhance productivity and growth potential.On September 9, the Ministry of Economy and Finance reported that Fitchs analysis indicated a stronger fiscal performance for South Koreas 2027 government budget than previously expected. The agency noted a substantial improvement in the fiscal balance and a more stable trajectory for national debt.Fitch forecasts that the managed fiscal balance will improve from a 3.9% deficit of GDP in 2026 to a 0.1% deficit in 2027. The consolidated fiscal balance is expected to record a 1.9% surplus relative to GDP. The national debt ratio for 2027 is projected at 48.3%, lower than Fitchs earlier estimate of 51.7%.The agency evaluated that the Future Response Fund could help mitigate the volatility of fiscal revenues due to economic fluctuations. It also mentioned that investments in strategic industries like AI and semiconductors could enhance productivity and growth potential, alleviating medium-term growth constraints stemming from an aging population and low birth rates.However, Fitch cautioned that the recent increase in tax revenue relies heavily on the semiconductor boom, suggesting that if the semiconductor market normalizes, fiscal deficits could gradually widen. Therefore, it is crucial to connect temporary tax revenue increases to improvements in productivity and potential growth.Previously, Moodys also positively assessed the 2027 budget proposal in a report released on September 3, noting that it seeks to balance fiscal soundness while enhancing future growth drivers.Moodys projected that the increase in demand for AI-driven semiconductors and the resulting tax revenue expansion would improve fiscal conditions. The agency viewed the plan to use part of the Future Response Fund to reduce net issuance of government bonds as a positive factor for credit ratings, as it would help restrain government leverage.Nonetheless, it emphasized the importance of adjusting expanded expenditures as planned and ensuring that investments in strategic industries lead to productivity and economic growth.The government stated, It is unusual for international credit rating agencies like Fitch and Moodys to positively evaluate our countrys fiscal soundness and future growth investment direction in the upcoming budget proposal, adding, We plan to actively explain our fiscal policies and long-term growth strategies to major credit rating agencies and global investors going forward.* This article has been translated by AI. September 9, 2026 1
-
Korean Inc. bottom and top lines at 11-year high Q2 on chip boom SEOUL, September 09 (AJP) - Sales at South Korea's externally audited companies grew at their fastest pace since 2015 in the second quarter as a semiconductor boom bolstered both top and bottom lines of manufacturers. Sales rose 26.7 percent from a year earlier in the April-June period, accelerating from 13.5 percent growth in the first quarter, according to data released Wednesday by the Bank of Korea (BOK). The reading was the highest since the first quarter of 2015. Externally audited companies are firms that meet statutory thresholds, including asset-size requirements, and are required under South Korean law to undergo an external audit. The BOK estimated the figures from a sample of 4,260 companies out of 26,509 eligible firms as of the end of 2025. Manufacturers led the acceleration, with sales growth jumping to 39.6 percent from 21.1 percent in the previous quarter. Sales in the machinery and electrical and electronics sector rose 88.5 percent from a year earlier, compared with 52.1 percent growth in the first quarter. The increase was heavily concentrated in electronic, video and communications equipment, a category that includes semiconductors. Sales in the sector surged 119.7 percent from a year earlier, up from 75.7 percent growth in the previous quarter. Excluding the sector, manufacturing sales growth would have been 14.0 percent instead of 39.6 percent, the BOK said. Sales growth among non-manufacturers also rose 9.7 percent from 3.7 percent. Transportation sales rose 13.6 percent, up from 8.1 percent, as the Middle East war pushed up tanker and bulk-shipping rates and increased demand for air cargo. Wholesale and retail sales growth accelerated to 13.7 percent from 7.1 percent, helped by stronger business at semiconductor distributors and department stores. Construction sales rose 0.3 percent from a year earlier, returning to growth for the first time in eight quarters as work on semiconductor plants increased. Total assets increased 6.8 percent from the end of the previous quarter, compared with a 0.2 percent increase in the same period a year earlier. Profitability improved even more sharply. The operating profit-to-sales ratio rose to 16.9 percent from 5.1 percent a year earlier. The pretax profit-to-sales ratio climbed to 23.1 percent from 5.3 percent. Both were the highest readings since the first quarter of 2015. Manufacturers' operating margin surged to 24.0 percent from 5.1 percent a year earlier. The machinery and electrical and electronics sector posted an operating margin of 43.0 percent, up from 7.4 percent. The BOK said profits rose faster than sales because chipmakers have a high share of fixed costs, magnifying the impact of stronger revenue on earnings. The petroleum and chemical sector also benefited from wider refining margins amid the Middle East war, lifting its operating margin to 9.5 percent from 2.5 percent. Profitability outside manufacturing was weaker, with the operating margin for non-manufacturers edging down to 5.0 percent from 5.1 percent a year earlier. The transportation sector's operating margin fell to 4.8 percent from 7.0 percent as higher oil prices and longer alternative routes raised costs despite stronger sales. The improvement was also much stronger among large companies. Sales growth at large firms accelerated to 30.5 percent from 16.0 percent in the first quarter. Growth at small and midsized companies rose to 10.2 percent from 2.4 percent. Large companies' operating margin jumped to 19.1 percent from 5.1 percent a year earlier. The margin for small and midsized firms edged up to 5.3 percent from 5.0 percent. Corporate balance sheets improved overall. The debt-to-equity ratio fell to 84.5 percent from 87.0 percent in the first quarter. Borrowings and corporate bonds as a share of total assets declined to 22.8 percent from 23.9 percent. Smaller firms moved in the opposite direction. Their debt-to-equity ratio rose to 112.1 percent from 103.0 percent. Borrowings and corporate bonds as a share of assets increased to 31.1 percent from 30.7 percent. AJP Takeaways - Bank of Korea data showed corporate sales growth reached its strongest pace since 2015 as the semiconductor boom lifted manufacturing revenue and profits. - South Korean manufacturers accounted for much of the improvement, with gains heavily concentrated in electronic, video and communications equipment. - Middle East disruptions boosted transportation sales, while higher oil prices and longer alternative routes weighed on the sector's profitability. September 9, 2026 1 -
Rising AI Power Demand Calls for Expanded Role of LNG Generation As demand for electricity surges due to the expansion of artificial intelligence (AI), semiconductors, and data centers, experts are advocating for an increased role of liquefied natural gas (LNG) generation to ensure stable power supply. They argue that extending the lifespan of existing LNG power plants and securing new facilities are necessary to complement the intermittency of renewable energy and transmission network constraints.Jeon Woo-young, a professor at Seoul National University of Science and Technology, stated on September 9 at the 12th LNG Forum held at the Oakwood Premier Coex in Seoul, The power demand from AI data centers and the semiconductor and advanced industries supporting AI is becoming significant.According to Professor Jeon, the governments upcoming 12th Basic Plan for Power Supply and Demand forecasts that domestic electricity consumption will increase by 52.6% from approximately 550 TWh in 2024 to 847.3 TWh by 2040. In an upward scenario, this could rise to 886.1 TWh. Notably, new demand is expected to add a total of 35.7 GW, with 24.6 GW from advanced industries and 11.1 GW from data centers.He emphasized that the role of LNG generation is essential in responding to the rapidly increasing power demand. Even as renewable energy generation grows quickly, its variability due to weather necessitates a reliable backup source for stable power supply.In the next 10 to 15 years, a fierce competition for AI supremacy will unfold, and realistically, LNG is the only resource that can back up the intermittency of renewable energy during this period, Professor Jeon said. He added that even as the industry transitions to hydrogen in the long term, LNG must serve as a bridge.There were also calls to maximize the use of existing LNG power facilities. The construction of new power plants requires significant time, and the global shortage of gas turbine supplies complicates the acquisition of new generation facilities.We should not shut down LNG power plants just because they are 30 years old, Professor Jeon remarked. Given the rising costs and supply challenges of building new alternatives, extending the lifespan of LNG power plants beyond 30 years is a way to secure existing infrastructure and prevent gaps in power supply during the AI era.Professor Son Yang-hoon from Incheon University also assessed that utilizing existing power facilities is crucial to meet the surging power demand. He emphasized that, especially with high interest rates increasing project financing costs, it is practical to maximize the use of existing coal, LNG, and nuclear power facilities.Additionally, there were calls for a stable fuel procurement strategy alongside the expansion of LNG generation. Kim Tae-sik, a researcher at the Korea Energy Economics Institute, presented on the topic of Global LNG Supply and Demand Changes and Implications for the Domestic LNG Industry, highlighting the need to prepare for uncertainties in the international LNG market.As domestic LNG import contracts are expected to see a rapid increase in expirations starting in the mid-2030s, he explained the importance of securing flexibility to respond to changes in demand while appropriately utilizing long-term contracts and spot imports to manage price and supply risks.Kim emphasized the need to establish a contract portfolio that reflects both upward and downward fluctuations in demand rather than relying solely on a single demand forecast. He stated, It is necessary to secure quantities and review contract terms considering the potential for demand increases and international price volatility, ensuring both supply stability and economic viability through diversification of price indices and quantity pathways.Meanwhile, the LNG Forum, hosted by the Private LNG Industry Association, is regarded as a key platform for policy discussions in the domestic LNG industry. The association plans to continue holding LNG forums to discuss policy directions for stable energy supply.* This article has been translated by AI. September 9, 2026 1
-
Q2 Corporate Operating Profit Margin Reaches Record High of 16.9% Driven by Semiconductors and Petrochemicals In the second quarter of this year, South Korean companies achieved a record operating profit margin, driven by growth in the semiconductor and petrochemical sectors.According to the Bank of Koreas 2026 Q2 Corporate Management Analysis Results released on September 9, a sample survey of 4,260 corporations among 26,509 external audit-targeted companies showed that the operating profit margin rose to 16.9%, an increase of 11.8 percentage points compared to the same period last year. This marks the highest figure since the first quarter of 2015.By sector, the operating profit margin for manufacturing soared from 5.1% in the second quarter of last year to 24.0%, nearly a fivefold increase. Excluding Samsung Electronics and SK Hynix, the margin was analyzed at 7.2%. During the same period, the machinery and electrical/electronics sectors surged from 7.4% to 43.0%, while the petrochemical sector rose from 2.5% to 9.5%.The improvement in the operating profit margin for the machinery and electrical/electronics sectors is attributed to the semiconductor industrys characteristics, where the increase in operating profit outpaces revenue growth due to high fixed costs, resulting in an operating leverage effect. The petrochemical sector benefited from increased refining margins due to the ongoing conflict in the Middle East.In contrast, the operating profit margin for non-manufacturing sectors fell slightly from 5.1% to 5.0%. Within the service industry, the transportation sector saw a decline from 7.0% to 4.8% due to rising costs from high oil prices and detours.There was a significant disparity in operating profit margins based on company size. Large corporations saw their operating profit margin rise from 5.1% to 19.1%, a 14 percentage point increase, while small and medium-sized enterprises only increased from 5.0% to 5.3%, a mere 0.3 percentage point rise.The overall revenue growth rate for all companies was reported at 26.7%, up 13.2 percentage points from the previous quarters 13.5%.By sector, manufacturing revenue growth increased from 21.1% in the first quarter to 39.6%. Excluding Samsung Electronics and SK Hynix, the revenue growth rate was around 14%.The revenue growth rate for machinery and electrical/electronics rose from 52.1% to 88.5%, continuing the trend of increased sales due to favorable semiconductor market conditions. Notably, the growth rate for electronic, video, and communication equipment jumped from 75.7% to 119.7%.Non-manufacturing revenue growth also improved, rising from 3.7% in the previous quarter to 9.7%, driven by increases in the transportation sector (8.1% to 13.6%) and retail (7.1% to 13.7%).The construction sector saw a slight increase from -4.0% to 0.3%, marking a return to revenue growth for the first time in eight quarters, aided by increased construction volume for semiconductor factories.By company size, large corporations increased from 16.0% to 30.5%, while small and medium-sized enterprises rose from 2.4% to 10.2%.In terms of financial stability, the overall debt ratio for companies in the second quarter decreased from 87.0% to 84.5%, and reliance on borrowed funds fell from 23.9% to 22.8% compared to the previous quarter.By sector, the debt ratio for manufacturing dropped from 68.0% to 65.7%, while non-manufacturing decreased from 122.9% to 120.2%. Among company sizes, large corporations saw their debt ratio decline from 83.8% to 79.8%, whereas small and medium-sized enterprises increased from 103.0% to 112.1%.As the profitability and growth of companies continue to improve in the first half of the year, attention is focused on whether this trend will persist in the second half. Lee Mi-joo, head of the Bank of Koreas corporate statistics team, stated, In the second half, the semiconductor market is expected to remain strong due to robust demand for artificial intelligence (AI) investments. If this trend continues until the end of the third quarter, domestic demand is also expected to show signs of recovery, leading to overall improvements primarily centered around semiconductor manufacturing.She added, However, given the ongoing situation in the Middle East and uncertainties surrounding U.S. tariff policies, the trajectory will need to be monitored based on corporate management conditions.* This article has been translated by AI. September 9, 2026 1
-
Kolon Industries Expands mPPO Production Line for AI and Semiconductor Applications Kolon Industries has enhanced its production capacity for mPPO (modified polyphenylene oxide), a low-dielectric material that reduces electrical signal loss in semiconductor circuit boards, in response to the growth of the artificial intelligence (AI) and semiconductor industries.On September 8, Kolon Industries announced the successful completion of the mPPO production line expansion at its Gyeongbuk Gimcheon Plant 2, holding a ceremony to mark the occasion.Circuit boards (PCBs) are essential components that transmit electrical signals between semiconductors and other parts. Copper-clad laminates (CCLs) play a crucial role in reducing signal loss, which can lead to slower speeds and heat generation. This is particularly important for products that process large amounts of data quickly, such as AI accelerators and 6G communication devices. mPPO exhibits dielectric performance that is approximately three to five times better than epoxy resins used for the same purpose, making it suitable for high-performance CCL production.After completing the new facilities in the second quarter of this year, Kolon Industries began production in the second half following the necessary hazardous material permits and trial operations. The company plans to gradually increase production volume by year-end while ensuring product quality and process stability, and it is already supplying the entire production volume to global CCL companies.Heo Seong, CEO of Kolon Industries, stated, This expansion marks a turning point for the mPPO business as it enters a full growth phase. We will cultivate next-generation electronic materials as a new growth driver based on our differentiated technology and quality competitiveness.Meanwhile, Kolon Industries is also accelerating its efforts to commercialize eco-friendly POM (polyacetal) products, targeting the low-carbon engineering plastics market for medical applications.* This article has been translated by AI. September 9, 2026 1
-
Hanoi City Engages with South Korean Companies to Accelerate Investment Hanoi City is intensifying its collaboration with South Korean companies to expand its future growth base. The city is shifting its focus from traditional urban development to attracting investments that enhance industrial competitiveness and urban infrastructure. Hanoi aims to connect South Korean capital and technology with its urban development strategy, thereby broadening economic cooperation between the two countries.On September 9, Hanois Peoples Committee Chairman, Vu Dai Tang, met with key South Korean companies and investors in Seoul to discuss advancing core projects in Hanoi and expanding investment opportunities. During the meeting, Chairman Tang spoke with representatives from a consortium including Jeju Semiconductor, APACT, and FPT Korea. This consortium is working on a semiconductor packaging and testing research and development project, investing over $100 million in Hanois Hoa Lac High-Tech Park. The three companies have signed a memorandum of understanding and aim to break ground in November 2026, with production expected to begin in the first quarter of 2028.The consortium expressed gratitude for Hanois interest and support, committing to focus their efforts on ensuring the project proceeds on schedule and contributes to strengthening economic cooperation between Vietnam and South Korea.Chairman Tang emphasized that the semiconductor industry and innovation are key growth drivers for Hanois development model. He requested the consortium to quickly advance their memorandum of understanding into concrete project documents. Hanoi City will support the relevant procedures and designate the Hoa Lac High-Tech Park and Industrial Zone Management Committee as a dedicated point of contact for guidance and coordination.Hanoi also plans to establish a semiconductor ecosystem in Hoa Lac, going beyond mere production facilities. Chairman Tang expressed hope that investors would gradually integrate production, research and development, integrated circuit design, and advanced workforce training, collaborating with local universities to create a robust industrial foundation.On the same day, Chairman Tang met with Jeong Won-joo, Chairman of Daewoo Engineering & Construction. Daewoo expressed appreciation for the support received from the Vietnamese government and Hanoi City, proposing strategic cooperation plans. They specifically requested assistance in accelerating the Star Lake New City project and committed to promoting technology transfer and advanced workforce training for Vietnamese workers involved in the group project.Daewoo also expressed willingness to share its experience in smart city and advanced urban development. They proposed sending a team of Korean experts to provide support. Additionally, they suggested holding an economic forum in Hanoi to commemorate the 35th anniversary of diplomatic relations between Korea and Vietnam in 2027, requesting Hanois cooperation in organizing the event and connecting businesses.Chairman Tang acknowledged Daewoos contributions to Hanoi, citing the Daewoo Hotel and the Star Lake Tay Ho urban development project as representative examples. Regarding Daewoos proposals related to the Star Lake project, he stated, I will instruct relevant departments and agencies to review and resolve any obstacles. He also urged Daewoo to allocate resources to expedite the remaining project items.Hanoi City remains open to further urban development participation from Daewoo. Chairman Tang welcomed Daewoos continued interest in new urban projects to implement the 100-Year Capital Comprehensive Plan. He also assured that he would coordinate efforts to promote proposals and cooperation programs commemorating the bilateral relationship in 2027.Discussions with Lotte Group also took place. Chairman Tang expressed pleasure in meeting with Shin Dong-bin, Chairman of Lotte Group, again after Shins visit to Vietnam in April. He noted that Lottes projects operating in Hanoi are running efficiently and contributing to the capitals socio-economic development.Hanoi requested Lotte Group to review investments aligned with new development directions. Chairman Tang suggested considering investments in next-generation commercial complexes, hotel services, and projects related to the Hong River landscape, linked to public transportation infrastructure such as urban railways. He also mentioned pursuing collaborative projects with major Vietnamese companies.In response, Chairman Shin expressed gratitude for the support provided by Hanoi City to Lotte and other South Korean companies. He stated, We want to expand our investments in Vietnam and Hanoi based on the traditional cooperative relationship between Korea and Vietnam. Lotte Group is prepared to collaborate with Vietnamese partners in retail, hospitality, residential, office, and urban landscape sectors.Shin also highlighted Lottes commitment to investing in social value creation. He stated, We will continue to invest not only in developing our core strengths but also in technology development programs for the younger generation and supporting innovative startups.Meanwhile, Hanoi City has broadened its cooperation possibilities with South Korean companies across various sectors, including semiconductors, urban development, smart cities, and mixed-use commercial facilities, during its Seoul schedule. The city is focused on concretizing major investment projects and linking South Korean companies entry into Vietnam with Hanois development strategy.* This article has been translated by AI. September 9, 2026 1
-
U.S., China, Germany, and Japan Focus on Industrial AI as South Korea Accelerates 'Manufacturing AI 2030' The United States, China, Germany, and Japan are positioning artificial intelligence (AI) as a key driver in reshaping manufacturing competitiveness, focusing on establishing national industrial AI ecosystems. The U.S. emphasizes AI infrastructure and software, while China leverages its strengths in physical AI. Germany and Japan are combining their existing manufacturing capabilities with supportive policies. South Korea is accelerating the spread of manufacturing AI by capitalizing on its strengths in semiconductors and information and communication technology (ICT) along with rapid field testing.The Korea Trade-Investment Promotion Agency (KOTRA) announced on September 9 that it has released a report titled Industrial AI Policies and Trends in Major Manufacturing Countries. The report indicates that these four countries share common goals of securing high-quality industrial data, developing proprietary AI models, expanding practical applications, and promoting AI adoption among small and medium-sized enterprises and local regions.The U.S. is building an ecosystem for AI robots and virtual factories, led by Nvidia. Tesla has introduced parallel assembly methods in its vehicle production, while Intel and Caterpillar are utilizing AI for semiconductor yield improvement and predictive maintenance for heavy equipment, respectively.China is using its vast manufacturing base as a testing ground for practical AI applications. It accounts for over half of global humanoid robot shipments and hosts more than 40% of the World Economic Forums designated lighthouse factories. The Chinese government aims to cultivate 3 to 5 large AI models specialized in manufacturing and support 1,000 leading companies by 2027 through its AI + Manufacturing policy.Germany is integrating manufacturing companies like Siemens and Bosch with industrial software capabilities. It is promoting Manufacturing-X, a platform for sharing manufacturing data among companies. BMW and Mercedes-Benz are applying digital twins and humanoid robots in their production facilities. Japan has set a goal to introduce 10 million AI robots by 2040 and plans to invest over 10 trillion yen in AI and semiconductor sectors by 2030.South Koreas strategy focuses on increasing the speed of field applications based on its memory semiconductor and ICT infrastructure, along with advanced manufacturing facilities. The government is promoting autonomous manufacturing and the spread of industry-specific AI through its Manufacturing AI 2030 initiative and the Manufacturing AI Transformation (M.AX) program.The Ministry of Trade, Industry and Energy has increased its budget for AI transformation across industries to 1.1347 trillion won this year, a 100.8% increase from the previous year, with a goal of establishing over 500 autonomous manufacturing AI factories by 2030.To support the overseas expansion of the industrial AI ecosystem, the Ministry of Trade, Industry and Energy, KOTRA, and six other organizations will host K-Connect AI for four weeks starting October 13. The event will feature five exhibitions related to AI home appliances, semiconductors, AI factories, manufacturing services, and robotics. An export consultation meeting and company exhibition will also take place on October 21-22, inviting overseas buyers to Kintex.KOTRA President Kang Kyung-sung stated, As the competition in industrial AI among major countries accelerates, the entire manufacturing paradigm is changing, presenting opportunities for our companies. We will work to identify collaborative needs and do our utmost to support the overseas expansion of the K-AI ecosystem.* This article has been translated by AI. September 9, 2026 1