Seoul: South Korea is set to embark on a significant 1 trillion-won (US$687.8 million) project aimed at developing artificial intelligence (AI) semiconductors for on-device usage, as announced by the industry ministry. This major initiative will commence next month and is scheduled to span over the next five years, with both government and private sector funding.

According to Yonhap News Agency, the objective of the project is to produce approximately 10 AI chips that will be utilized in technologies such as self-driving cars, smart home appliances, and humanoid robots. The Ministry of Trade, Industry and Resources has emphasized that this endeavor is part of a larger strategy to advance the AI transformation within manufacturing industries, facilitated through its Manufacturing AX (M.AX) Alliance initiative.

Launched in September, the M.AX Alliance consists of around 1,000 key companies and research institutes, including notable players like Samsung Electronics Co., Hyundai Motor Group, LG Electronics Inc., and Rainbow Robotics. The project is expected to assist local firms in reducing their dependence on foreign AI chipmakers by enhancing technological capabilities.

The government is also focusing on improving access for local fabless companies to foundries, facilitating the creation of test products for advanced nodes. Additionally, financial support for the semiconductor industry will be bolstered through the establishment of a dedicated investment fund for fabless companies. Support will further extend to those producing middle-tech chips for sectors such as automotive, communications, and defense.

"In the era of AI, semiconductors are a core strategic asset that determines both industrial competitiveness and national security," stated the industry minister in a press release, reaffirming the government's commitment to supporting the industry.