The project "K-on-device AI Semiconductor technology development," led by the Ministry of Trade, Industry and Resources, was finalized at the "National R&D Project Evaluation General Committee" held on the 2nd with a total budget of 800 billion won. The government will fund 511 billion won, with the remainder coming from the private sector.
The project supports the development of customized AI Semiconductors needed to produce advanced AI products in four key sectors: automobiles; IoT and home appliances; machinery and robots; and defense. The Ministry of Trade, Industry and Resources will announce the project in June and move quickly to start it in July. The project will run for five years from this year through 2030.
It was originally planned as a 1 trillion won project, but during the budget review, amid criticism that the total budget was excessive, it was reportedly cut by nearly 200 billion won. (☞[Exclusive] The total budget for the "K-on-device AI Semiconductor project," which was to receive 1 trillion won, is expected to be reduced by up to 300 billion won)
On-device AI Semiconductors, unlike AI Semiconductors that run AI models installed in data centers, are embedded in individual devices such as smart glasses, robots and CCTVs. Because they must be able to run AI without being connected to servers, they are characterized by superior performance-per-watt efficiency.
On-device AI Semiconductors, unlike server AI Semiconductors dominated by global big tech companies such as Nvidia and AMD, have no entrenched leader, and Korea—which has both fabless (chip design) companies and global demand companies in its key industries—is seen as well positioned to seize an advantage.