South Korea Accelerates Development of Domestic On-Device AI Semiconductors with $800 Million Investment

Government is accelerating the development and commercialization of domestic on-device artificial intelligence (AI) semiconductors. The plan aims to strengthen the competitiveness of the AI semiconductor ecosystem by establishing a collaborative framework among demand companies, fabless firms, foundries, and semiconductor IP companies.

On June 15, the Ministry of Trade, Industry and Energy announced the holding of the "2026 M.AX Alliance AI Semiconductor First Half General Meeting" at L Tower in Seocho-gu, Seoul. The event was attended by over 150 industry representatives, including demand companies, fabless firms, foundries, semiconductor IP companies, the Korea Semiconductor Industry Association, and the Korea Evaluation Institute of Industrial Technology (KEIT).

During the meeting, a signing ceremony for the "Semiconductor Manufacturing Support Task Force (TF)" was held, along with a briefing on the "K-Domestic On-Device AI Semiconductor Technology Development Project." Participants discussed strategies for securing domestic AI chips and fostering the industrial ecosystem.

The Ministry plans to support the development of 10 types of advanced domestic on-device AI chips tailored to demand companies through the K-Domestic On-Device AI Semiconductor Technology Development Project, which has a total project cost of 800.23 billion won. The developed semiconductors will be integrated into actual products for performance verification and demonstration.

On-device AI semiconductors are considered a key technology that can be applied across various fields, including smart appliances, robotics, autonomous driving, and industrial equipment, influencing the competitiveness of next-generation manufacturing.

To facilitate smooth semiconductor design and production support, the Ministry has officially launched the Manufacturing Support TF. The TF includes participation from semiconductor IP companies such as Arm, Synopsys, and Cadence, as well as Samsung Electronics.

The TF aims to provide support for semiconductor IP purchasing costs and design software (EDA) utilization for participating fabless companies, ensuring smooth prototype production and verification through foundry technical support and securing manufacturing lines.

Kim Sung-yeol, head of the Industrial Growth Office, stated, "A collaborative system has been established involving demand companies, fabless firms, semiconductor IP companies, and foundries. We will spare no policy support to ensure that domestic advanced AI semiconductors can lead the AI transformation in manufacturing (M.AX)."