The core goal of this plan is to jointly invest by the government and private enterprises in the next five years to develop about 10 domestically produced AI semiconductor chips specifically for device applications, covering scenarios such as autonomous driving, smart home appliances, and humanoid robots.

This plan is an important component of the Manufacturing AX (M.AX) Alliance, which will be launched in September 2025. The alliance brings together approximately 1000 leading companies and research institutions, including Samsung Electronics, Hyundai Motor Group, LG Electronics, Rainbow Robotics, and others.

According to the South Korean Ministry of Industry, Trade and Resources, this plan will help local companies reduce their technological dependence on foreign AI chip manufacturers.

The government plans to improve the wafer fab access of local fabless semiconductor companies, assist them in developing advanced process testing products, and strengthen financial support for the semiconductor industry by establishing a dedicated investment fund.

In addition, the government will also support companies that produce mid-range technology chips, which are mainly used in key fields such as automobiles, communications, and defense.

Kim Jung Kwan, Minister of Industry, Trade and Resources of South Korea, emphasized that semiconductors are a core strategic asset that determines industrial competitiveness and national security, and promised to fully support the development of this industry.