Seoul is paying for a project that could quietly loosen TSMC’s grip on one of Korea’s biggest appliance makers. LG Electronics will have AI chips for its home products manufactured on Samsung’s foundry through a state-backed development program, according to fabless partner CoAsia SEMI.
The trade-ministry program, called K-On-Device AI Semiconductor Technology Development, pairs LG as the customer with CoAsia SEMI as the designer. The two IoT chips being developed run from July through 2030 at a cost of KRW 31B, with LG setting specifications and CoAsia SEMI optimizing the designs for production.
Samsung’s foundry gets the manufacturing work, a choice industry officials called unusual because LG has relied on TSMC for appliance chips even in earlier government projects. The chips are ultra-low-power SoCs designed for always-on sensing in next-generation AI home platforms.
The program spans far beyond appliances, covering autos, robotics, machinery and defense with a total budget of about KRW 800B through 2030. Hyundai Motor, Doosan Robotics, Daedong and Korea Aerospace Industries are among the other participating customers.
CoAsia SEMI CEO Shin Dong-soo said the LG cooperation positions his company for more AI home and application business. For Samsung Foundry, the project offers a small but symbolic win as it chases domestic design wins against TSMC’s dominant share.
