The ‘K-On-Device AI Semiconductor Technology Development Project,’ led by the Ministry of Trade, Industry and Resources, was finalized on the 2nd at the ‘National Research and Development Project Evaluation Committee’ with a total project cost of 800 billion Korean won. The government budget amounts to 511 billion Korean won, with the remaining funds to be invested by the private sector.
This project will support the development of customized AI semiconductors required for the production of advanced AI products in four major industries: automobiles, IoT/home appliances, machinery/robotics, and defense. The Ministry of Trade, Industry and Resources plans to promptly announce this large-scale national project by mid-June and commence it within July to avoid missing the golden time for securing a leading position in the on-device AI market. The project will run for five years, from this year to 2030.
Originally planned to be implemented on a scale of 1 trillion Korean won, the project saw its budget reduced by nearly 200 billion Korean won during the review process due to criticisms that the total cost was excessive. (☞[Exclusive] Projected Reduction of Up to 300 Billion Korean Won in Total Project Cost for ‘K-On-Device AI Semiconductor Project’ Initially Planned with 1 Trillion Korean Won Investment)
Unlike AI semiconductors that drive AI models installed in data centers, on-device AI semiconductors are embedded in individual devices such as smart glasses, robots, and CCTV. They must exhibit superior performance efficiency relative to power consumption, as they need to operate AI without being connected to a server.
Unlike server AI semiconductors led by global big tech companies such as Nvidia and AMD, the on-device AI semiconductor sector lacks dominant players. It is evaluated that South Korea, which possesses both fabless companies (semiconductor design firms) and global demand companies in key industries, can secure a favorable position in this field.
Originally written by: Chun Byung-soo
Image credit: Courtesy of Ministry of Trade, Industry and Resources
Source: The Chosun Daily
Published on: 2 June 2026
Link to original article: Government Finalizes 800 Billion Won K-On-Device AI Semiconductor Project
