South Korea is set to kick off a 1 trillion-won ($687.8 million) project next month aimed at developing artificial intelligence (AI) semiconductors for on-device applications, as announced by the industry ministry. Over the next five years, the government and private sector will jointly invest the allocated funds with the objective of producing around 10 AI chips suitable for use in self-driving cars, smart home devices, humanoid robots, and more, according to the Ministry of Trade, Industry and Resources.
The initiative forms part of the government’s broader strategy to drive the AI transformation within manufacturing industries through the Manufacturing AX (M.AX) Alliance initiative, which was introduced following discussions between Industry Minister Kim Jung-kwan and AI chip manufacturers. Launched in September, the alliance includes approximately 1,000 major companies and research institutions, including industry players like Samsung Electronics Co., Hyundai Motor Group, LG Electronics Inc., and Rainbow Robotics.
This forthcoming project is anticipated to assist local companies in lessening their reliance on foreign AI chip producers, the ministry highlighted. To facilitate the development of test products for advanced nodes, the government aims to enhance local fabless companies’ access to foundries and bolster financial backing for the semiconductor sector by establishing a specialized investment fund for fabless entities. Additionally, support will be provided to firms engaged in manufacturing mid-tech chips for the automotive, communications, and defense sectors, as per the ministry’s directives.
“In the era of AI, semiconductors represent a crucial strategic asset that influences both industrial competitiveness and national security,” emphasized the industry minister in a press release, affirming governmental backing for the sector. Concurrently, South Korea is gearing up to commence mass production of humanoid robots in 2029 and AI-powered autonomous vehicles the following year, positioning itself as a global frontrunner in the AI-driven transformation of manufacturing industries, as outlined by the industry ministry.
