Seoul, Feb 11 (IANS) South Korea will begin a 1 trillion-won ($687.8 million) project next month to develop artificial intelligence (AI) semiconductors for on-device use, the industry ministry said on Wednesday.

The government and private companies will funnel a combined 1 trillion won into the project over the next five years, with a goal of creating some 10 AI chips that can be used in self-driving cars, smart home appliance products, humanoid robots and others, according to the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

The project is part of the government’s comprehensive plan to foster the AI transformation of manufacturing industries through its Manufacturing AX (M.AX) Alliance initiative announced at an earlier meeting between Industry Minister Kim Jung-kwan and AI chipmaking companies.

The alliance, which kicked off in September, comprises some 1,000 major companies and research institutes, including tech giant Samsung Electronics Co., auto giant Hyundai Motor Group, home appliance maker LG Electronics Inc. and robotics firm Rainbow Robotics.

The upcoming project will help local companies reduce their technological dependence on foreign AI chipmakers, the ministry said.

The government plans to improve local fabless companies’ access to foundries to help them create test products for advanced nodes and strengthen financial support for the semiconductor industry by creating a dedicated investment fund for fabless companies.

Support will be extended to companies that produce middle-tech chips for the automotive, communications and defence sectors, according to the ministry.

“In the era of AI, semiconductors are a core strategic asset that determines both industrial competitiveness and national security,” the industry minister said in a press release, vowing government support for the industry.

Meanwhile, South Korea will work to begin mass producing humanoid robots in 2029 and autonomous vehicles powered by artificial intelligence (AI) the following year, making it a global leader in the AI transformation (AX) of manufacturing industries, the industry ministry said.

The plan was unveiled at the launching ceremony of the Manufacturing AX Alliance (M.AX), which will connect major companies, such as Hyundai Motor Group, LG Electronics Inc., Samsung Electronics Co. and Posco Group, with AI companies to help manufacturing companies apply AI technology in their businesses.

–IANS

na/