KAI Equips Unmanned Aerial Vehicles with Domestic AI Semiconductors... Embarking on 'Physical AI' Implementation

Selected as the Preferred Negotiation Partner for the Ministry of Trade, Industry and Energy’s AI Semiconductor Project
First Practical Steps Toward Securing Sovereignty in AI and Defense

Korea Aerospace Industries (KAI) is taking the lead in implementing 'Physical AI' by applying domestically developed artificial intelligence (AI) semiconductors to unmanned aerial vehicles. This marks the first instance of homegrown AI semiconductors being installed on actual defense platforms and is expected to serve as a turning point for securing AI and defense sovereignty.

KAI Next Air Combat System (NACS) introduced at ADEX 2025. KAI

On July 31, KAI announced that it had been finally selected as the preferred negotiation partner in the defense sector for the Ministry of Trade, Industry and Energy’s “K-On-Device AI Semiconductor Technology Development Project.”

This project, with a total budget of 95.3 billion won, will be pursued over five years. The goal is to develop on-device AI semiconductors and to integrate and validate these within unmanned aerial vehicle platforms.

KAI will oversee the entire project and will also be responsible for Subtasks 1 and 3, which involve developing, integrating, and validating high-speed expendable unmanned aerial vehicles and the Autonomous Control System (ACS). The development of the AI semiconductor (System on Chip, SoC) will be handled by domestic fabless companies, while Samsung Electronics will be responsible for foundry (semiconductor contract manufacturing).

The project involves the participation of domestic players from the semiconductor ecosystem, including companies specializing in AI semiconductor and AI model development. Through this initiative, KAI aims to localize and achieve self-sufficiency in defense semiconductors, which have so far been highly dependent on overseas sources. It also expects to expand opportunities for domestic fabless and AI companies to enter the defense market.

The AI semiconductors developed will also be applied to KAI’s proprietary AI pilot, “K-AILOT,” which is currently in development. For the AI pilot to autonomously control unmanned aerial vehicles, it must be able to analyze and make decisions based on large-scale data in real time. The core device that handles this is the AI semiconductor.

KAI plans to expand this technology to cover AI semiconductors for satellites as well, establishing an on-device AI system that enables combat data collected from reconnaissance satellites to be processed in real time onboard the satellite itself. Building on this, KAI envisions a phased realization of a Hyper Connected Battlespace—connecting air (manned and unmanned aerial vehicles), space (satellites), and ground via domestically produced AI semiconductors and communications networks.

A KAI representative stated, "There is a global acceleration in the competition to automate weapon systems," adding, "As this is the first case of applying domestically developed AI semiconductors to real defense platforms, the project will be a significant milestone in securing sovereignty in AI and defense."

This content was produced with the assistance of AI translation services.