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South Korea will launch a major artificial intelligence semiconductor development initiative next month, committing 1 trillion won ($687.8 million) over five years to reduce technological dependence and strengthen its position in the global AI chip market.
Ambitious Chip Development Goals
The government and private sector partnership aims to create approximately 10 AI chips specifically designed for on-device applications. These semiconductors will target critical emerging technologies including self-driving cars, smart home appliances, and humanoid robots, according to the Ministry of Trade, Industry and Resources announced Wednesday.
The project represents a cornerstone of Korea’s Manufacturing AX (M.AX) Alliance initiative, which was unveiled following discussions between Industry Minister Kim Jung-kwan and leading AI chipmaking companies. This comprehensive plan focuses on fostering AI transformation across Korea’s manufacturing industries through coordinated public-private collaboration.
Tech Giants Rally Behind Initiative
The M.AX Alliance, which launched in September, has assembled an impressive coalition of approximately 1,000 major companies and research institutes. Key participants include technology leader Samsung Electronics, automotive giant Hyundai Motor Group, home appliance manufacturer LG Electronics, and robotics specialist Rainbow Robotics.
This broad industry participation underscores the strategic importance Korean corporations place on developing domestic AI semiconductor capabilities. The alliance structure enables knowledge sharing and resource pooling across traditionally separate sectors, from consumer electronics to automotive manufacturing.
Strategic Positioning in Global AI Race
The initiative comes as nations worldwide race to establish semiconductor self-sufficiency amid supply chain vulnerabilities and geopolitical tensions. Korea’s focus on on-device AI chips addresses a rapidly growing market segment where processing power must be embedded directly into consumer and industrial products rather than relying on cloud-based solutions.
On-device AI semiconductors offer advantages including reduced latency, enhanced privacy protection, and decreased dependence on internet connectivity. These benefits make them particularly valuable for autonomous vehicles requiring split-second decision-making and smart home devices handling sensitive personal data.
Industry Impact and Timeline
The five-year timeline reflects the complexity of semiconductor development, from initial design through manufacturing and testing phases. Success in this endeavor would position Korea as a significant player in the specialized on-device AI chip market, complementing its existing strengths in memory semiconductors and consumer electronics.
The project’s emphasis on practical applications across multiple industries suggests Korea is prioritizing commercially viable AI solutions over purely research-focused initiatives, potentially accelerating the path from development to market deployment.
Sources: Koreatimes
