Growing AI Semiconductors and Expanding into Physical AI… IITP: “Securing Full-Stack Competitiveness”
Director Hong Jin-bae Presents AI and ICT R&D Achievements
Four Domestic NPU Companies to Be Nurtured… Attracting Large-Scale Investment
Full-Scale Development of Agent-Based AI and World Model Begins
Expanding into Defense AX, 6G, Security, and Talent Development
[Edaily Reporter Shin Young-bin] The Institute for Information & Communications Technology Planning & Evaluation (IITP) is setting out to secure “full-stack AI competitiveness” encompassing everything from AI semiconductors to AI models, physical AI, next-generation networks, and cybersecurity. This move stems from the assessment that, in the era of the AI Grand Transformation (AX) 2.0, it is crucial to build an ecosystem that goes beyond competition in individual technologies and organically connects semiconductors, models, networks, security, and talent to drive innovation in industrial productivity.
On the 17th, the IITP held the “2026 Results Media Day” at the AI·SW Maestro Training Center in Mapo-gu, Seoul, where it announced its achievements in AI and ICT research and development (R&D) and talent development, along with its future strategies.
The IITP, a specialized ICT R&D agency under the Ministry of Science and ICT, is supporting projects totaling 1.8996 trillion won this year, including 1.137 trillion won for technology development, 574 billion won for talent development, and 170.6 billion won for infrastructure development and technology commercialization.
In particular, the agency plans to focus its efforts on building a “full-stack AI ecosystem” that integrates AI semiconductors, hyper-scale AI models, physical AI, next-generation networks such as 6G, cybersecurity, and digital talent development. Its policy is to strengthen the support system so that research outcomes go beyond mere technological development and lead to innovation in industrial applications and services.
Hong Jin-bae, President of the Institute for Information & Communications Technology Planning & Evaluation (IITP), delivers a presentation at the “2026 Results Media Day” held on the 17th at the AI·SW Maestro Training Center in Mapo-gu, Seoul. (Photo: Institute for Information & Communications Technology Planning & Evaluation) IITP President Hong Jin-bae stated on that day, “AI and ICT R&D and talent development are the core drivers of South Korea’s AI and ICT competitiveness,” adding, “In the AX 2.0 era, where agentic AI and physical AI are rapidly permeating daily life and industrial settings, we will connect R&D outcomes to industrial growth and tangible value in people’s lives.”
President Hong particularly emphasized that the focus of AI competition is shifting toward “full-stack capabilities.” He explained, “The pace of AI innovation is surpassing previous predictions, and its scope is expanding beyond the digital world into the physical world,” adding, “The key to competitiveness lies in integrating core technologies—such as AI models, AI semiconductors, networks, and cybersecurity—to drive service and industrial innovation.”
In the field of AI semiconductors, he assessed that proactive government R&D investment has served as a catalyst for the growth of domestic neural network processing unit (NPU) companies. Since 2020, the IITP has supported large-scale R&D projects, including next-generation intelligent semiconductors and PIM AI semiconductors. As a result, four major AI semiconductor companies—Rebellion, FuriosaAI, DeepX, and Mobilint—have grown, with Rebellion and DeepX now entering the global market.
Investment returns have also followed. Rebellion secured 6400억 won in March through the first National Growth Fund, while FuriosaAI raised 8000억 won in May through the third fund. The total investment in these two companies alone amounts to 1조4400억 won. Going forward, the IITP plans to improve data processing speed and bandwidth—identified as bottlenecks in expanding inference services—and scale up AI computing infrastructure.
In the AI model sector, the agency stated that investments—ranging from “Exobrain,” Korea’s first AI R&D project, to ultra-lightweight multimodal vision-language models (VLMs)—have served as the foundation for the growth of domestic AI companies such as Saltlux, #Conan Technology, Maum AI, and NC AI. Starting this year, the agency will also begin full-scale development of the “Four Major Citizen-Centric Agent-Based AI” initiatives, designed to support company-wide business innovation, simulation design, everyday empathy-based counseling, and medical ultrasound analysis.
In the Physical AI sector, AI models were described as the “brain,” while edge AI semiconductors were described as the “heart.” Through its Physical AI Leading Technology Development Project, the IITP is supporting the development of Maum AI’s autonomous intelligence platform, among other initiatives. In the edge AI semiconductor sector, companies such as DeepX and Mobilint are expanding their collaborations with domestic and international firms in the fields of robotics, industrial PCs, and autonomous manufacturing.
This year, the agency will also begin developing a “World Model” to strengthen the Physical AI foundation. The IITP plans to secure next-generation Physical AI full-stack core technologies, ranging from general-purpose foundation models and the advancement of World Models to ultra-low-latency, low-power computing platforms.
In the next-generation networking sector, the report highlighted that domestic companies such as Solide and Oi Solution have grown into key partners in the global telecommunications supply chain through R&D for 5G commercialization. The IITP will host the “2026 6G Vision Fest” this coming December and is also taking steps to prepare for the early commercialization of 6G, including network foundation models (NFM), autonomous networks, and low-Earth orbit satellite communications.
In the cybersecurity sector, the agency highlighted achievements in zero-trust, supply chain security, cloud defense-in-depth, and homomorphic encryption technologies. To counter autonomous AI attacks, the “AI Cyber Shield Dome”—centered on a security-specialized AI engine—is also under development.
Defense AX was also presented as a key initiative. The IITP will implement the “Defense AX Sprint” from 2026 to 2027 with a budget of 400억 won to align civilian AI and ICT R&D achievements with military needs. Military-industry-academia cooperation centers will be established in five major hubs nationwide—Daejeon, Yongsan, Yangjae, Busan, and Pangyo—to ensure a constant connection between civilian AI capabilities and defense needs.
Director Hong also emphasized the importance of talent development. This year, the IITP plans to strengthen the supply of core AI talent by selecting 10 new AI-focused universities and 10 new AX graduate schools, and to expand practical talent development programs—such as the AI·SW Maestro and Innovation Academy—to regional areas.
Director Hong stated, “We will further strengthen our results-oriented R&D support system to ensure that the AI and ICT R&D achievements accumulated over the years translate into tangible value for industrial growth and the lives of our citizens,” adding, “The IITP will serve as the powerhouse driving the advancement of AI R&D and talent development in South Korea.”
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