The South Korean government plans to invest 700 billion won ($478 million) in 2026 to support artificial intelligence (AI) transformation in the manufacturing sector. This includes developing on-device AI chips and promoting exports of AI factories. The Manufacturing AX (M.AX) Alliance, involving around 1,300 companies, will lead these efforts.
The South Korean Ministry of Trade, Industry and Resources announced key projects on December 24, 2025, for the AI transformation of the manufacturing sector in 2026. The Manufacturing AX (M.AX) Alliance, launched in September, is a government-led coalition involving over 1,300 manufacturing and AI companies, including Hyundai Motor Group, LG Electronics, Samsung Electronics, and Rainbow Robotics. It forms part of the ministry's core initiative to position South Korea as a global leader in manufacturing AI transformation.
The five major projects include developing AI models for robotics, automobiles, and AI factories; creating on-device AI semiconductors; and promoting AI factory exports. The government plans to invest at least 100 billion won by 2030 in building an AI database for manufacturing industries and another 700 billion won by 2032 for customized AI models in AI factories, future mobility, and AI robots.
The alliance aims to develop on-device AI chips for automobiles, robots, and home appliances, releasing a test product by 2028 and producing 10 types of AI semiconductors by 2030. Overall, it targets generating more than 100 trillion won in added value by 2030 through AI transformation of key industries, with plans for mass production of humanoid robots in 2029 and self-driving cars in 2030.
