Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Energy (MOTIE, Minister JK Kim) hosted a forum on September 30, 2025, at the Seongnam Global Convergence Center, bringing together semiconductor end-user and supplier companies as the first step in launching the K-On-Device AI Semiconductor Technology Development Project—a core initiative of the AI Semiconductor M.AX Alliance. The Alliance was established to help Korea emerge as a global leader in manufacturing AX (advanced transformation) by 2030.

The forum brought together approximately 150 stakeholders from across the AI semiconductor industry, including end-user companies in the automobile, IoT/appliance, machinery/robotics, and defense sectors; Korean fabless companies (design) and foundries (manufacturing); and global IP firms that supply semiconductor design blocks. The program featured technology demonstrations by fabless firms such as DEEPX, Mobilint, and FuriosaAI; a presentation on the project implementation plan by MOTIE; the signing of MOUs among MOTIE, end-users, fabless firms, foundries, and IP firms; and a discussion led by end-users, Arm, and Samsung Foundry on how to foster Korea’s AI semiconductor ecosystem.

Overview of the AI Semiconductor M.AX Alliance Forum 

Date/Location: Tuesday, September 30, 2025, 15:00–17:30 / Seongnam Global Convergence Center (1F, Multipurpose Hall 2)
Hosted/Organized by: MOTIE / Korea Semiconductor Industry Association, Korea Planning & Evaluation Institute of Industrial Technology (KEIT)
Participants: Minister of Trade, Industry and Energy and about 150 representatives from industry, academia, and research, including semiconductor end-users, foundries, and fabless firms 
Program: AI semiconductor fabless technology demonstrations, presentation of the project implementation plan, signing of an MOU to ensure project success, and discussions on ways to strengthen Korea’s AI semiconductor ecosystem

Background and Implementation Plan for the Project

To become a global leader in manufacturing AX, developing AI models is important, but it is equally essential to develop on-device AI semiconductors—the hardware that powers AI within advanced products across industries. To this end, MOTIE is supporting the development of Korean on-device AI semiconductors for integration into advanced products such as autonomous vehicles, smart home appliances, humanoids, and unmanned aerial vehicles through close partnership with end-user companies in four key sectors and Korean fabless firms.

In August, a KRW 1 trillion project to develop customized AI semiconductors, AI software, and modules needed for producing advanced products in four key industries was exempted from the preliminary feasibility study. Following a formal review, MOTIE plans to launch the project in 2026 through consortia of end-user and fabless companies. The project aims to release Korean-made AI semiconductor prototypes in 2028 and develop 10 types of on-device AI semiconductors for integration into advanced products by 2030.

Scope of the K-On-Device AI Semiconductor Technology Development Project 

On-Device AI Semiconductor Full Stack: Development and demonstration of customized on-device AI semiconductors, AI software, modules, and prototypes
Application in Advanced Products: Autonomous vehicles, smart home appliances, unmanned aerial vehicles, collaborative robots, humanoids, unmanned agricultural robots
Implementation Plan:
(2026) Formation of sector-specific consortia and project announcement → Begin AI semiconductor design
(2027–2028) Production and verification of AI semiconductor prototypes
(2029) Development of modules to be integrated into advanced products using AI semiconductors
(2030) Development of advanced prototypes such as autonomous vehicles and humanoids equipped with Korean-made AI semiconductors

Operation of the AI Semiconductor M.AX Alliance

The Alliance will strengthen linkages among end-user companies, fabless firms, foundries, and IP providers. End-users will contribute by sharing data and supporting field demonstrations to ensure that project outcomes extend beyond semiconductor development to real-world application and mass production in advanced products. Global IP firms and Korean foundries will help participating consortia manufacture prototypes at scale and at reasonable cost.

MOTIE will continue to pursue shared growth strategies so that fabless firms can scale up, foundries can expand their customer base, and end-users can accelerate AI transformation. Given the cross-sector nature of AI semiconductors, MOTIE also plans to reinforce connections with sector-specific M.AX Alliances in autonomous driving, AI-powered home appliances, humanoids, and defense to expand and apply project outcomes across industries.

Minister JK (Jung-Kwan) Kim stressed, “AI semiconductors are the innovation engine driving the AI transformation of advanced products such as autonomous vehicles and humanoids, making them a crucial pillar of manufacturing AX. The government will move swiftly to launch the K-On-Device AI Semiconductor Technology Development Project in 2026 and ensure Korea achieves global competitiveness in hardware.”