June 15, 2026 /SemiMedia/ — South Korea is preparing to invest up to 500 billion won in research and development for next-generation power semiconductors, as the country seeks to build a stronger domestic supply chain for chips used in AI data centers, energy systems and advanced industrial applications.

According to South Korean media reports, the broader project could reach 750 billion won in total investment. Deputy Prime Minister and Finance Minister Koo Yun-cheol recently chaired a meeting to discuss a commercialization roadmap for advanced power semiconductors.

Power semiconductors are increasingly being viewed in South Korea as a potential growth engine after DRAM. Samsung Electronics and SK hynix have benefited strongly from DRAM and high-bandwidth memory demand, but rising power requirements in AI infrastructure are drawing greater attention to chips used for power conversion, distribution and energy efficiency.

In AI data centers, power semiconductors are essential for converting, regulating and delivering electricity efficiently to servers, accelerators and related infrastructure. As AI clusters consume more electricity, these components are becoming more important to system efficiency, thermal management and operating costs.

Next-generation power semiconductors based on silicon carbide and gallium nitride offer advantages over traditional silicon devices in high-temperature, high-voltage and high-frequency environments. Beyond AI data centers, these technologies are also expanding in defense, robotics, aerospace, electric vehicles and renewable energy systems.

South Korea is concerned that limited competitiveness in power semiconductors could leave domestic industries dependent on overseas suppliers for critical components. The government plans to launch the large-scale R&D effort in advance and involve companies that are expected to use power semiconductors directly in the development process.

The project aims to build a complete industrial chain covering materials, devices, modules and system-level validation. By linking end users with early-stage development, South Korea hopes to shorten the gap between research and mass production.