From AI Chip Design to Production: Building a Public-Private Collaborative Ecosystem
M.AX Alliance AI Semiconductor Division General Assembly Held
Dedicated Task Force for IP and Foundry Support Launched
The government is accelerating the establishment of a domestic artificial intelligence (AI) semiconductor ecosystem. The plan is to support the development and commercialization of domestically produced on-device AI chips by building a collaborative framework among demand companies, fabless companies, semiconductor intellectual property (IP) firms, and foundries.
On June 15, the Ministry of Trade, Industry and Energy announced that it held the '2026 M.AX Alliance AI Semiconductor Division Mid-Year General Assembly' at the EL Tower in Yangjae, Seoul. The event was attended by approximately 150 industry stakeholders, including demand companies, fabless companies, foundries, semiconductor IP firms, the Korea Semiconductor Industry Association, and the Korea Evaluation Institute of Industrial Technology (KEIT).
During the assembly, a Financial business agreement for the 'Semiconductor Manufacturing Support Task Force (TF)' was signed, and an information session was held for the 'K-On-Device AI Semiconductor Technology Development Project.' Through these initiatives, the government intends to fully activate a collaborative system that encompasses the development, production, and demonstration of domestic AI chips.
The Ministry plans to support the development of 10 types of advanced, customized domestic on-device AI chips for demand companies through the K-On-Device AI Semiconductor Technology Development Project, which has a total budget of 800.23 billion won (511.11 billion won from the national treasury). The developed chips will be integrated into actual products, linking development to production and demonstration.
The Semiconductor Manufacturing Support TF, launched on this day, includes participation from semiconductor IP companies such as Arm, Synopsys, Cadence, OpenEdge Technology, Qualitas Semiconductor, Chips&Media, as well as foundry firms like Samsung Electronics.
The TF will devise measures to support domestic fabless companies participating in the project, including covering semiconductor IP purchase costs and electronic design automation (EDA) software license fees. It will also establish detailed plans for providing foundry technical support and securing manufacturing lines to ensure that prototypes of the developed AI chips can be produced and verified in a timely manner.
The Ministry sees not only research and development collaboration between demand companies and fabless companies as essential in the domestic AI chip development process, but also support from semiconductor IP firms and foundries. The Ministry plans to build an ecosystem that supports the entire process from design to manufacturing and demonstration.
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Kim Seong-yeol, Director General for Industrial Growth at the Ministry, stated, "A robust on-device AI semiconductor ecosystem has been established, with demand companies driving development according to market needs and semiconductor IP firms and foundries providing advanced design and manufacturing infrastructure. We will provide strong policy support to ensure that advanced domestic AI semiconductors can drive a major transformation (M.AX) across the entire manufacturing sector."
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