Breaking TSMC Reliance, LG Electronics to Outsource AI Home Appliance Chips to Samsung

IT Home, August 31 — South Korean semiconductor design solution company CoAsia SEMI announced today that it will jointly participate in the "K-On-Device AI Semiconductor Technology Development" project, led by the Ministry of Trade, Industry and Energy, alongside LG Electronics.

CoAsia SEMI will develop two Internet of Things (IoT) chips for LG Electronics' AI home appliances. The project will run from July 2026 to December 2030, with a total development cost of 31 billion KRW (Note: approximately 151 million RMB at current exchange rates).

As the client, LG Electronics will provide the specific specifications for the IoT chips and lead the overall development direction. CoAsia SEMI will be responsible for the overall chip design and optimize the design for semiconductor foundry processes. Additionally, some employees from CoAsia NEXELL, a fabless chip company under the CoAsia Group, are expected to participate in the project to support R&D.

The two parties plan to use this opportunity to seize the initiative in next-generation AI home platforms and explore new markets. They will develop ultra-low power system-on-chips (SoCs) that support continuously running environmental awareness functions while further reducing power consumption and costs.

These chips will be manufactured by Samsung Electronics' foundry. Previously, LG Electronics primarily utilized TSMC's foundry processes to produce relevant chips for its home appliance products.

An industry insider stated, "Even for a government-funded project, it is quite rare for LG Electronics to choose Samsung Electronics' foundry for chip production. In the past, even when participating in some government-funded projects, LG Electronics mainly used TSMC's foundries."

The "K-On-Device AI Semiconductor Technology Development" project aims to support AI semiconductor R&D, with application areas including automotive, IoT, home appliances, machinery, robotics, and defense. The project has a total budget of approximately 800 billion KRW (approximately 3.9 billion RMB at current exchange rates) and will run from 2026 to 2030.

Companies such as Hyundai Motor, Doosan Robotics, Daedong, and Korea Aerospace Industries (KAI) are also participating, acting as clients for their respective projects.

CoAsia SEMI CEO Shin Dong-soo stated, "Based on our collaboration with LG Electronics, we will further seek business opportunities in the AI home appliance market and other application markets."