South Korea’s SK Hynix plans to triple its wafer production capacity by 2034, a dramatic expansion that underscores the country’s determination to corner the market for memory chips essential to artificial intelligence. The announcement, made by Group SK chairman Chey Tae-won in Tokyo, reflects an expectation that demand for high-bandwidth memory will surge as AI applications multiply. It also signals that Seoul views semiconductor dominance as a non-negotiable pillar of economic security.

Yet the push for hardware supremacy is only half the story. At the Korea Job World centre near Seoul, schoolchildren don virtual reality headsets to simulate work in chip fabrication plants, part of a broader state-led effort to prepare the workforce for an automated future. Policymakers are acutely aware that without a parallel investment in human capital, the productivity gains promised by AI could bypass large segments of society, exacerbating inequality in a country already grappling with one of the world’s lowest birth rates.

Analysts in Washington see the twin strategy as a direct response to the intensifying global technology race, where the United States, China and the European Union are all ploughing public funds into domestic chip manufacturing and AI skills. From Tokyo, the Nikkei forum where Chey spoke has become a stage for Asia’s industrial titans to calibrate their strategies as supply chains reconfigure. London-based economists argue that South Korea’s approach, blending industrial policy with lifelong learning, could offer a template for other advanced economies wrestling with technological disruption.

The gamble is not without risk. Geopolitical frictions over Taiwan and export controls on chip equipment could complicate expansion plans, while competition from Intel and TSMC intensifies. Moreover, a glut in memory chip supply, a perennial feature of the industry, could erode prices just as SK Hynix’s new capacity comes online. Ultimately, South Korea’s ability to turn its AI prowess into durable economic growth will test whether the country can move beyond its traditional role as a manufacturing export powerhouse to become an innovation-led economy that spreads the benefits widely.