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 budget is 511 billion won, with the remainder funded by 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 to launch it quickly in July. The project will run for five years from this year through 2030.
The total budget was initially set to proceed at 1 trillion won, but during the budget review process, amid criticism that the overall amount 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, go into individual devices such as smart glasses, robots, and CCTV. Because they must be able to run AI without being connected to a server, they are characterized by superior performance-per-watt efficiency, among other metrics.
On-device AI Semiconductors, unlike server AI Semiconductors led by global big tech companies such as Nvidia and AMD, have no dominant player. Korea, which has both fabless (semiconductor design companies) and global demand companies in its flagship industries, is seen as well-positioned to gain an advantage in this field.