Korea Aerospace Industries (KAI)(047810) industries (KAI) will mount a domestic artificial intelligence (AI) semiconductor on an unmanned aircraft to pursue "physical artificial intelligence (AI)." It is the first case of installing an AI Semiconductor developed in Korea on an actual defense platform.

KAI said on the 31st that it was finally selected as the preferred bidder in the defense sector for the Ministry of Trade, Industry and Resources' "K-on-device AI Semiconductor technology development project." The project is worth 95.3 billion won, and the development period is five years. The goal is to develop an On-device AI Semiconductor and integrate it into an unmanned aircraft platform for verification.

KAI's Next-generation Air Combat System is on display at ADEX 2025. /Courtesy of KAI

The project is divided into three sub-tasks. While overseeing the entire project, KAI will handle the development, integration and verification of a high-speed expendable aerial unmanned aircraft and an autonomous control system (ACS). AI Semiconductor (SoC) design will be handled by a domestic fabless (semiconductor design) firm, and semiconductor production (foundry) will be the responsibility of Samsung Electronics(005930). In addition, domestic AI Semiconductor and AI model development corporations and institutions will join forces in a consortium.

Until now, defense semiconductors have been highly dependent on overseas sources. Through this project, KAI expects to open the floodgates for localization of defense semiconductors and, at the same time, to create a win-win model that opens the door of a new market—defense—for domestic fabless and AI corporations.

The developed semiconductor will be applied to the AI pilot "K-AILOT," which KAI is developing in-house. For an AI pilot to fly an unmanned aircraft on its own, it must analyze and decide on vast amounts of data in real time, and the core device that handles these computations is the AI Semiconductor.

KAI plans to expand the scope to satellite AI Semiconductors, establishing an On-device AI system that processes battlefield data secured by reconnaissance satellites directly on board without ground control. If realized, an "ultra-connected battlefield" will be completed, linking aerial manned and unmanned aircraft, space satellites, and the ground through domestic AI Semiconductors and communications networks.

A KAI official said, "As this is the first case of applying an AI Semiconductor developed domestically to an actual defense platform, it will be a decisive opportunity to secure AI sovereignty and defense sovereignty."

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