Seoul, Feb 11 (NationPress) South Korea is set to launch a significant initiative worth 1 trillion won (approximately $687.8 million) next month aimed at advancing artificial intelligence (AI) semiconductors designed for on-device applications, according to a statement from the industry ministry on Wednesday.

The collaborative effort will see both the government and private sector pooling resources to invest 1 trillion won over the next five years, with the objective of developing around 10 AI chips. These chips are anticipated to be integrated into self-driving vehicles, smart home appliances, humanoid robots, and more, as highlighted by the Ministry of Trade, Industry and Resources, as reported by the Yonhap news agency.

This initiative is part of a broader governmental strategy to facilitate the AI transformation within manufacturing sectors, under the Manufacturing AX (M.AX) Alliance, which was introduced during a prior meeting involving Industry Minister Kim Jung-kwan and leading AI chip manufacturers.

Launched in September, this alliance includes around 1,000 prominent companies and research institutions, featuring tech leader Samsung Electronics Co., automotive powerhouse Hyundai Motor Group, home appliance giant LG Electronics Inc., and robotics innovator Rainbow Robotics.

The forthcoming project aims to enable local firms to diminish their reliance on international AI chip manufacturers, as stated by the ministry.

The government also plans to enhance access to foundries for local fabless companies to aid in the development of test products for advanced nodes, while establishing a dedicated investment fund to bolster financial support for the semiconductor sector.

This support will extend to businesses creating mid-tech chips for the automotive, communications, and defense industries, as per the ministry's announcements.

The industry minister emphasized, "In the era of AI, semiconductors represent a key strategic asset that shapes both industrial competitiveness and national security," reaffirming the government's commitment to the sector.

Additionally, South Korea aims to commence mass production of humanoid robots in 2029 and autonomous vehicles powered by AI the subsequent year, positioning itself as a leader in the AI transformation of manufacturing industries, according to the ministry.

This strategy was revealed during the inaugural ceremony of the Manufacturing AX Alliance (M.AX), which aims to connect major enterprises such as Hyundai Motor Group, LG Electronics Inc., Samsung Electronics Co., and Posco Group with AI firms to facilitate the integration of AI technology in manufacturing operations.