South Korea to Spend One Trillion Dollars on AI and Chips
South Korea announced a new one trillion dollar plan. This plan will build hubs for computer chips and artificial intelligence outside of Seoul. President Lee Jae-myung wants to bring jobs to rural areas. Companies like Samsung and SK Hynix will help. Other countries are also spending money because global demand for chips is very high.
South Korea announced a new technology plan on Monday. The government wants to spend one trillion dollars soon. This plan will build chip hubs and artificial intelligence hubs.
The president of the country explained the details on television. The name of this president is Lee Jae-myung. He spoke alongside leaders from big chip companies. These two important companies are Samsung and SK Hynix.
"We must secure the core elements of AI fast," the president said. The companies will build a new chip factory in the southwest. South Korea wants to develop these hubs outside of the capital. Right now, most advanced factories are in Seoul.
The president said the plan was very important for survival. Many rural areas in South Korea are losing people. This is because most industries are in Seoul. This plan will bring jobs to other parts of the country.
Other countries are also spending a lot on chip factories. Taiwan, China, and Japan want to make more computer chips. This is happening because of the big AI boom. This boom increases the global demand for chips.
Now, there is a global shortage of computer chips. Because of this shortage, prices for components are higher. Last week, Apple and Microsoft raised their prices for some devices. Customers must pay more money for these new products.
American technology companies are also spending a lot of money. Google, Amazon, and Meta will spend 650 billion dollars this year. SK Hynix is a beneficiary of this high spending. The value of this company topped one trillion dollars in May.
However, some investors worry about this large spending. Some technology stock prices fell in the last few days. But South Korea believes chips are the future.
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When did South Korea announce the new plan?
Future with Will
Used to make predictions or state future plans.
“This plan will build chip hubs and artificial intelligence hubs.”
What to know · A2
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Scenario: Discussing local technology news with a coworker.
- 01“Did you hear the news?”
- 02“They are going to build it soon.”
- 03“Prices are very high now.”
Register tip · informal
🔑Key Phrases
Used to describe official government projects.
The company announced a new technology plan yesterday.
Refers to rural or regional areas instead of Seoul.
They built new schools outside of the capital.
Describes the current problem where there are not enough chips.
The global shortage of computer chips affected car production.
🎙️ Article Audio — Kokoro TTS
South Korea to Spend One Trillion Dollars on AI and Chips
💬Discussion Questions
Open-ended questions to talk or write about — alone, with a partner, or in class.
- 1
How often do you buy new electronic devices?
Personal - 2
Why do you think big cities attract more businesses than rural areas?
Opinion - 3
How does the price of a phone affect your choice to buy it?
Evaluate - 4
What changes will we see in robots in ten years?
Predict - 5
Would you prefer to work for a large company or a small one?
Compare - 6
How can governments help poor regions in your country?
Opinion - 7
In what ways do you use technology to make your life easier?
Personal - 8
Why are chip shortages a problem for the global economy?
Evaluate
Adapted from BBC Business · Read the original. LectoPress rewrites the facts as original graded-reader text for language learners.
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