AI Chip Race Intensifies: Expert Warns of Supply Chain Crisis Ahead of APEC 2025
GYEONGJU, SOUTH KOREA – The future of artificial intelligence hinges on a precarious global semiconductor supply chain, and the competition to secure it is already reaching a fever pitch. This urgent warning comes from Chris Miller, author of the acclaimed Chip War: The Fight for the World’s Most Critical Technology, speaking at the World Knowledge Forum (WKF) 2025 in Gyeongju, South Korea today. With the APEC summit looming in late 2025, the stakes are particularly high for the region, and the need for strategic investment in AI expertise and infrastructure is now critical.
The AI Imperative: Why Chips Matter More Than Ever
Miller emphasized that AI functionality is no longer a futuristic concept; it’s rapidly becoming integral to everyday technology – from the smartphones in our pockets to the robots poised to reshape industries. “AI functionality will inevitably become more prominent in all future applications,” he stated, highlighting the exponential growth in demand for AI-dedicated chips. This isn’t just about faster processing speeds; it’s about national competitiveness and economic security. The current reliance on a single, vulnerable semiconductor supply chain is a ticking time bomb, and the geopolitical implications are enormous.
Gyeongbuk Province: A Potential Semiconductor Hub?
The focus of Miller’s address centered on the potential of North Gyeongsang (Gyeongbuk) Province to become a key player in the semiconductor industry. The region’s designation in 2023 as a specialized cluster for semiconductor materials, components, and equipment presents a unique opportunity. However, Miller stressed that capitalizing on this requires a two-pronged approach: aggressively training AI experts and strategically expanding the semiconductor supply chain within the province. This isn’t simply about attracting investment; it’s about building a self-sustaining ecosystem of talent and innovation.
Gyeongju, South Korea, is preparing to host the APEC summit in 2025, placing a spotlight on its growing role in the global technology landscape.
A Global Supply Chain on the Brink
The core of Miller’s warning lies in the inherent fragility of the global semiconductor supply chain. “No single country possesses every element of the semiconductor supply chain,” he pointed out, underscoring the interconnectedness – and vulnerability – of the entire system. The United States and China, while both vying for dominance in AI, are fundamentally reliant on the same limited pool of material and equipment manufacturers. This creates a situation ripe for conflict, as both nations are “forced to compete fiercely in order to survive.” The situation isn’t likely to resolve quickly; Miller predicts stabilizing these supply chains will take decades, given the immense R&D costs involved.
Beyond Chips: The Computing Power Challenge
While securing the chip supply is paramount, Miller also identified establishing sufficient computing power as the greatest challenge facing nations seeking to lead in AI. AI, big data, and cloud technologies all depend on robust processing capabilities. The race to build AI infrastructure and expand computing power is already underway, with the US and China leading the charge. As AI becomes more affordable, access to computing power will become the defining factor in a nation’s ability to deploy AI across various applications. Crucially, Miller emphasized the need for robust cybersecurity and a stable power grid to support this expanding capacity, suggesting data distribution as a key security measure.
The WKF 2025, co-hosted by North Gyeongsang Province and Maekyung Media Group, aims to foster collaboration and innovation in preparation for the APEC summit. The event’s theme, “A World of Shared Prosperity: Gyeongbuk, a Future Community,” reflects the growing recognition that addressing these complex challenges requires a global, cooperative approach.
The urgency of Miller’s message is clear: the future of AI isn’t just about technological innovation; it’s about geopolitical strategy, economic resilience, and a fundamental rethinking of how we build and secure the technologies that will define the 21st century. The decisions made today, particularly in regions like North Gyeongsang Province, will shape the landscape of AI for decades to come, and the world is watching.
