Government Launches 1 Trillion Won 'K-On-Device AI Semiconductor Technology Development' Project with Key Industries
The government is launching a 1 trillion-won project to develop 'K-On-Device AI Semiconductor Technology,' partnering with semiconductor demand and supply companies across four key sectors: automotive, Internet of Things (IoT) and home appliances, machinery and robotics, and defense.
On the 20th, the Ministry of Trade, Industry, and Energy (MOTIE) held an 'AI Semiconductor Collaboration Forum' at the Westin Chosun Hotel in Seoul, where they signed memorandums of understanding (MOUs) for technological cooperation with domestic fabless companies (semiconductor design firms) and demand companies.
On-device AI semiconductors are next-generation chips that can be directly embedded in devices such as smartphones, cars, and robots, allowing them to perform AI computations without the need for connection to servers or the cloud. Their strengths include real-time computation, high security, low network dependency, and low power consumption.
This project, which amounts to a total of 1 trillion won, is focused not only on the development of on-device AI semiconductors but also on related software, modules, and AI models. It aims to develop a full-stack solution and apply it to real-world industries through practical demonstrations.
Demand companies, including Hyundai Motor, LG Electronics, Doosan Robotics, Daedong, and Korea Aerospace Industries (KAI), are participating from the planning phase of the project, forming a "dream team" with domestic fabless and software companies to collaborate on everything from technology development to mass production.
The Ministry of Industry is currently fast-tracking procedures such as applying for exemption from preliminary feasibility studies. The goal is to start government funding as early as next year.
Over the past six months, the Ministry has received 193 technology demands, carefully reviewing their industrial impact and competitiveness. Based on this, four priority sectors for support were selected, and six detailed development projects were identified.
Specifically, these projects include:
▲AI chips for autonomous vehicles that can operate even in unstable communication environments
▲Smart home semiconductors that enable family-customized lighting and temperature/humidity control
▲Chips for humanoid robots that interact with humans
▲Defense semiconductors for unmanned aerial vehicles (UAVs) capable of autonomous decision-making and precise strikes without communication
At the forum, fabless companies demonstrated their on-device AI semiconductor technologies under development and shared collaboration plans and business models with demand companies.
After the technology development phase, the government plans to strengthen the supply chain and expand the industrial ecosystem through follow-up support, including standardization, certification, supply chain establishment, and domestic and international marketing.
Minister of Industry Ahn Deok-geun stated, "Just as Intel ruled the PC era, Apple led the mobile era, and Nvidia dominated the generative AI era, we are now transitioning into the era of physical AI, where the market is waiting for a new leader." He emphasized, "The government will swiftly promote the 'K-On-Device AI Semiconductor' technology development project to ensure that South Korea can become a leader in the physical AI era."
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