The government has decided to invest 700 billion won from next year's artificial intelligence (AI) budget in manufacturing AI transformation (M.AX).
On December 24, the Ministry of Trade, Industry and Energy, with Minister Kim Jeong-Kag in attendance, held the first regular general meeting of the M.AX Alliance and announced a set of initiatives that include this plan.
Kim Jeong-Kag, Minister of Trade, Industry and Energy, is delivering opening remarks at the "M.AX Alliance?National Growth Fund Linked Meeting" held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on December 4, 2025. Photo by Dongju Yoon
First, the government will launch data generation, sharing, and utilization projects in each sector in earnest. The core and starting point of manufacturing AX is securing, sharing, and utilizing manufacturing data. To this end, the Ministry will invest over 100 billion won by 2030 to promote projects that secure and utilize high-quality data in each division, such as AI factories and AI robots.
The development of AI models for each sector will also be accelerated. Following the AI model and product development projects for the AI factory, AI future vehicles, and AI robot divisions that began this year, the Ministry will expand AI model and product development to divisions such as autonomous ships, AI home appliances, and AI bio starting next year. The Ministry plans to invest over 700 billion won by 2032.
The government will also embark on on-device AI semiconductor development projects. As a project worth about 1 trillion won this year was exempted from the preliminary feasibility study, starting next year, the focus will be on developing AI semiconductors to be embedded in advanced products in four key industries: automobiles, robots, unmanned aerial vehicles, and home appliances. The goal is to launch prototypes in 2028 and develop 10 on-device AI semiconductors by 2030.
The government will also lay the groundwork for exporting AI factories. In particular, to realize dark factories, the highest level of autonomous factories, the AI factory division will develop full-stack AI technologies that cover all stages of manufacturing, including process design, process optimization, supply chain management, and logistics optimization. In this regard, the Ministry plans to establish a strategy next year, centered on the AI factory division, to become the world's leading exporter of AI factories.
The spread of regional AX will also be promoted. In particular, the government plans to expand regional AX in connection with the "Five Major and Three Specialized" growth engines and transform key regional industrial complexes into AI and robot-based M.AX clusters. In this process, the Ministry will actively involve M.AX Alliance companies, research institutes, and universities in major projects to strengthen the link between the M.AX Alliance and regional AX policies.
Minister Kim Jeong-Kag stated, "The M.AX Alliance has quickly established itself as the central axis of Korea's manufacturing AX just 100 days after its launch," adding, "I hope the upcoming Year of the Blue Horse will be a meaningful year in which the M.AX Alliance and our manufacturing industry take a significant leap forward through challenge and innovation."
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