The government has sought to foster artificial intelligence (AI) semiconductors by providing large-scale R&D, infrastructure, and financial support.

The Ministry of Trade, Industry and Energy announced on the 14th that First Vice Minister Park Sung-taek visited Furiosa AI as his first on-site visit since taking office and held a meeting to strengthen AI semiconductor competitiveness together with domestic AI semiconductor suppliers such as fabless, design houses, and SW companies, and demand companies such as Hyundai Motor Company, LG Electronics, and Hanwha Systems that are promoting the introduction of AI in their main industries.

At this meeting, in a situation where 'on-device AI' directly installed in devices is spreading across all industrial fields, the status of AI technology and domestic semiconductor application by industry such as automobiles, home appliances, and defense was diagnosed, and development and application plans for industry-tailored high-performance, low-power AI semiconductors ('edge semiconductors') were discussed.

Industry participants assessed that AI internalization is necessary for the advancement of major manufacturing industries, and that our semiconductor industry has sufficient conditions for the growth of the on-device AI industry because it has capable design companies. In the AI semiconductor market, some companies, including Nvidia, are currently leading the 'server semiconductor' market, but we shared the view that there is an opportunity for new fabless companies to enter the market as the environment is favorable for developing 'edge semiconductors' optimized for the field through cooperation with major industries.

Industry participants then made suggestions such as ▲ promoting demand-linked large-scale R&D projects for the development of customized AI semiconductors by industry, ▲ establishing development and production infrastructure for AI semiconductors, ▲ providing large-scale financial support for fabless scale-up, and ▲ training excellent design personnel.

In relation to the demand-linked large-scale R&D project for the development of customized AI semiconductors by industry, we will strengthen the operation of the 'AI Semiconductor Collaboration Forum' with the participation of 11 industry-specific demand companies and 31 IP, fabless, design houses, and SW companies.

Based on the discussions at the forum, we will prioritize R&D projects that can develop industry-specific edge semiconductors that are linked to our main industries and have high market impact, and support industrial field verification and actual application.

Furthermore, reflecting the fact that AI semiconductors place more importance on the comprehensive functions required by demand companies than on the performance of individual chips, the government plans to plan a large-scale project to create competitive AI semiconductors and related products and services by forming a tight-knit fleet that includes IP, fabless, design houses, and SW.

In relation to establishing AI semiconductor development and production infrastructure, the 'System Semiconductor Verification Support Center' was opened in Pangyo, Seongnam in September of this year to support design and verification using expensive equipment essential for AI semiconductor development.

In addition, we are building a ‘Korea-US AI Semiconductor Center’ in Silicon Valley to support the overseas expansion of fabless companies.We want to expand the opportunity for prototype manufacturing (MPW) for the developed chips through consultation with foundry companies and increase the cost of prototype manufacturing support.

Regarding large-scale financial support for fabless scale-ups, a semiconductor ecosystem fund worth 1.1 trillion won will be fully implemented starting in the third quarter of this year, targeting fabless companies aiming for scale-ups and M&As. Starting with the 300 billion won fund currently established, we will focus on supporting the enlargement of system semiconductor companies.

In relation to fostering semiconductor design talent, we will strengthen the training courses within universities for fostering semiconductor design talent, and establish a design engineer training course that can be immediately deployed to the field. In addition, we will improve the conditions for excellent foreign talent to be employed at domestic fabless companies through consultation with relevant ministries.

Vice Minister Park Sung-taek said, “All industries need to be redesigned from an AI perspective,” and added, “Since the core of AI is customized high-performance, low-power system semiconductors, the government will not spare any necessary support to help our semiconductor companies succeed in the situation where a third wave of AI is coming in the semiconductor market following PCs and mobile devices.”