(KPL/Yonhap) The government will spend 700 billion won (US$478 million) next year to support projects for the artificial intelligence (AI) transformation of the manufacturing sector, including the development of on-device AI chips and exports of AI factories, the industry ministry said Wednesday.

The Manufacturing AX (M.AX) Alliance, a government-led alliance of businesses and organizations working for the AI transformation (AX) of manufacturing industries, unveiled five major projects for next year at its first general assembly, according to the Ministry of Trade, Industry and Resources.

The projects include the development of AI models for robotics, automobiles and AI factories, development of on-device AI semiconductors and promotion of exports of AI factories.

In detail, the government plans to invest at least 100 billion won by 2030 in the creation of an AI database for manufacturing industries, and another 700 billion won by 2032 to develop customized AI models for AI factories, future mobility and AI robots.

The alliance aims to develop on-device AI chips for automobiles, robots and home appliances, to release a test product by 2028 and create 10 types of AI semiconductors by 2030.

The M.AX Alliance kicked off in September under the industry ministry's key initiative of making South Korea a global leader in manufacturing AX, comprising some 1,300 major manufacturing and AI companies, including Hyundai Motor Group, LG Electronics Inc., Samsung Electronics Co. and Rainbow Robotics.

The alliance hopes to generate more than 100 trillion won in added-value by 2030 through the AI transformation of key manufacturing industries, with a detailed target of entering the mass production of humanoid robots in 2029 and self-driving cars in 2030.

KPL