U.S. shift in approach to AI sector could be boom, doom for Korea

The United States is rewriting its tech strategy by sidelining chip manufacturing in favor of accelerating AI infrastructure like data centers and power systems, reshaping global competition and putting Korean firms on notice.

U.S. President Donald Trump holds a signed executive order permitting AI infrastructure after speaking during an AI summit at the Andrew W. Mellon Auditorium in Washington on July 23. [AP/YONHAP]

The United States is rewriting its tech strategy by sidelining chip manufacturing — including Intel’s foundry ambitions — in favor of accelerating AI infrastructure like data centers and power systems, reshaping global competition and putting Korean firms on notice.

In the plan, the U.S. government prioritizes three pillars: deregulating innovation, fast-tracking AI infrastructure build-out and reinforcing AI diplomacy and security.

Under innovation, deregulation targets AI software development. Infrastructure covers hardware — including semiconductor fabs, data centers and power systems. Diplomacy and security focus on global leadership.

The infrastructure component pledges to expedite environmental approval for building power grids optimized for AI workloads and to encourage new energy generation — including geothermal, nuclear fission and fusion.

The Donald Trump administration has drawn a clear line on semiconductor policy, rejecting subsidies for chip manufacturing and instead promising to lead the sector’s revival.

The pivot reverses the Joe Biden administration’s strategy, which had earmarked billions for domestic chip production, to the particular benefit of Intel. Big tech's wish list

Big Tech appears to welcome the shift. Bloomberg reported on Thursday that the government’s new "AI Action Plan" reflects nearly all the recommendations made by OpenAI, Google and Meta in March.

These companies are more concerned about securing affordable, scalable power and data centers to run AI services than about sourcing chips in the United States.

No company was more central to the Biden-era semiconductor push than Intel.

The Biden administration had pledged up to $20 billion in CHIPS Act subsidies and loans to support its domestic foundry plans.

But Intel on Thursday effectively exited the advanced foundry race against TSMC and Samsung Electronics, saying it would no longer pursue excessive investment without demand.

The company reported an operating loss of $3.17 billion in its foundry business in the second quarter. Trump backs Nvidia

U.S. President Donald Trump now appears to favor Nvidia.

Speaking at an AI Summit in Washington on Wednesday, he singled out CEO Jensen Huang during his address.

U.S. President Donald Trump delivers remarks on AI at the ″Winning the AI Race″ Summit in Washington on July 23. [REUTERS/YONHAP]

"I said, ‘Look, we’ll break this guy up,’ before I learned the facts of life," Trump said. "I figured we could go in, and we could sort of break them up a little bit, get them a little competition, and I found out it’s not easy in that business. Then I got to know Jensen, and now I see why."

Nvidia, which had previously been restricted from exporting its H20 AI accelerator to China, resumed shipments last week with government approval after a three-month pause.

Back in April, Nvidia unveiled a plan to build $500 billion worth of AI infrastructure in the United States over four years.

Nvidia CEO Jensen Huang attends the ″Winning the AI Race″ Summit in Washington on July 23. [REUTERS/YONHAP]

Under the proposal, it would fabricate chips in Arizona through TSMC, package them via Amkor and SPIL, and assemble servers in Texas using Foxconn and Wistron.

Except for Amkor, all participating firms are Taiwanese, but the Trump administration reportedly endorsed the plan, viewing it as a way to build AI supercomputers entirely on U.S. soil. Geopolitics and opportunity for Korea

The AI Action Plan also includes three separate statements emphasizing that “adversarial technology” must be excluded from AI infrastructure.

While China is not mentioned by name, the language signals a clear intent to sideline Chinese companies in sectors such as power generation, data centers and grid construction. That stance opens new opportunities for Korean firms in backend industries such as nuclear power, energy systems, HVAC and data storage.

At the same time, the Trump administration’s insistence on removing all unnecessary CHIPS Act conditions casts doubt on whether Samsung Electronics’ Taylor, Texas, facility will receive previously anticipated federal support.

“The collapse of Intel’s foundry ambitions could open the door for Samsung,” an industry insider said. “But if it fails to secure key clients for advanced processes, Samsung could face a similar reckoning.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY SHIM SEO-HYUN [paik.jihwan@joongang.co.kr]