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Introduction: When Rivals Become Partners, Technology Markets Should Pay Attention
Samsung and LG have spent decades competing across some of the most important technology markets in the world. From televisions and OLED displays to home appliances, monitors, and consumer electronics, the two South Korean giants are usually seen standing on opposite sides of the battlefield.
That is exactly why reports of a potential collaboration between them are attracting attention.
According to information reported by TheElec, LG Electronics could turn to Samsung Foundry to manufacture new Internet of Things chips designed for its future AI-powered home appliances. If the collaboration moves forward as expected, it would represent a fascinating shift in the relationship between two companies that normally compete aggressively for consumers and market leadership.
The reported partnership also highlights something much larger than a simple manufacturing agreement. It reflects South Korea’s growing ambition to strengthen its domestic semiconductor ecosystem, accelerate on-device artificial intelligence, and build the hardware foundations required for the next generation of intelligent homes.
LG may be known for refrigerators, washing machines, televisions, and other household technology, but the future of the smart home will increasingly depend on something consumers rarely see: highly efficient chips operating silently inside millions of connected devices.
And Samsung may become one of the companies helping LG build that future.
The Original Report: LG Could Choose Samsung Foundry for New IoT Chips
The report suggests that LG Electronics is developing two new Internet of Things chips intended for AI-powered home appliances.
Rather than manufacturing the chips internally, LG is reportedly preparing to work with Samsung Foundry for fabrication. The chips themselves are expected to be designed by CoAsia SEMI according to specifications and technical requirements provided by LG Electronics.
Under the reported structure, LG would define what the chips need to accomplish, CoAsia SEMI would develop the semiconductor designs, and Samsung Foundry would manufacture the final silicon.
This would create an interesting three-part technology partnership involving appliance expertise, semiconductor design capabilities, and advanced chip manufacturing infrastructure.
A Rare Collaboration Between Two Historic South Korean Rivals
Samsung and LG compete across numerous consumer technology categories.
Samsung has enormous businesses in smartphones, televisions, displays, appliances, memory, processors, and semiconductor manufacturing. LG, meanwhile, remains one of the world’s most recognizable brands in televisions, home appliances, displays, and connected home technologies.
Because of this competitive history, direct cooperation between the companies is relatively unusual.
However, modern technology markets are becoming increasingly complex.
A company can compete with another business in one market while simultaneously becoming its supplier in another. Semiconductor manufacturing is one of the clearest examples of this reality.
Samsung Foundry can manufacture chips for companies that may compete with Samsung elsewhere. The foundry business operates as a supplier of advanced manufacturing services, allowing customers to design their own chips while relying on Samsung’s fabrication infrastructure.
For LG, this could provide access to domestic semiconductor manufacturing capabilities without requiring the company to build its own expensive chip fabrication facilities.
Why LG Needs External Semiconductor Manufacturing
Unlike Samsung Electronics, LG Electronics does not operate a massive in-house semiconductor fabrication business.
Developing a modern semiconductor manufacturing facility requires extraordinary financial investment, highly specialized engineering, advanced equipment, and years of technological development.
For this reason, many technology companies design chips but depend on specialized foundries to manufacture them.
LG has historically relied on external semiconductor manufacturers, including Taiwan Semiconductor Manufacturing Company, better known as TSMC, for chip production.
That approach allows LG to focus its resources on product development, appliance technology, artificial intelligence, and semiconductor specifications without taking on the enormous cost of operating leading-edge fabrication plants.
The reported move toward Samsung Foundry therefore represents a potentially important change in LG’s semiconductor supply strategy.
Instead of relying exclusively on overseas manufacturing partners, LG could increasingly use South Korea’s own semiconductor ecosystem for strategically important projects.
Two New IoT Chips Could Power LG’s AI Home Appliances
The reported project involves two new IoT chips designed for future AI-powered home appliances.
These chips are expected to focus heavily on ultra-low-power operation and always-on sensing.
That combination is particularly important for the future of artificial intelligence inside homes.
A smart appliance may need to monitor environmental conditions, detect user behavior, process sensor information, and respond to commands without constantly transmitting every piece of data to remote cloud servers.
Traditional computing architectures can consume too much power for these tasks.
Ultra-efficient system-on-chips could allow devices to perform selected AI and sensing functions locally while using significantly less electricity.
For LG, this could become an important foundation for its broader AI home strategy.
Always-On Sensing Could Change How Smart Appliances Work
Always-on sensing sounds simple, but it could fundamentally change the relationship between consumers and household technology.
Imagine a refrigerator that continuously monitors food conditions, temperature patterns, energy usage, and user behavior.
Imagine an air conditioner that automatically recognizes occupancy patterns and environmental changes.
Imagine a washing machine capable of identifying usage habits and optimizing its operation without requiring constant instructions.
These capabilities require sensors, processing hardware, and software that can operate efficiently for long periods.
The challenge is that always-on technology cannot consume excessive amounts of electricity.
This is where ultra-low-power semiconductor designs become strategically important.
LG’s reported IoT chips are intended to reduce power consumption while supporting persistent sensing and intelligent processing.
The objective is not simply to make appliances smarter.
It is to make intelligence efficient enough to operate continuously.
CoAsia SEMI Could Play a Critical Role in the Chip Design Process
According to the report, CoAsia SEMI is expected to design the chips based on LG’s specifications and technical direction.
This illustrates another major trend within the global semiconductor industry.
Companies increasingly specialize.
One company may define the product requirements.
Another may design the semiconductor architecture.
A separate company may optimize specific intellectual property.
Finally, a large foundry manufactures the chip.
This distributed semiconductor ecosystem allows companies to combine specialized expertise rather than attempting to perform every stage internally.
CoAsia SEMI’s role could therefore be critical in transforming LG’s AI home requirements into physical semiconductor designs ready for manufacturing.
Samsung Foundry Could Become the Manufacturing Engine
Samsung Foundry would reportedly handle fabrication of the new chips.
For Samsung, winning external manufacturing customers is strategically important.
The global semiconductor industry is becoming increasingly competitive, particularly in the foundry market.
Manufacturing chips for external customers allows Samsung to expand the utilization of its fabrication infrastructure and strengthen its position as a global semiconductor supplier.
A project involving LG would also carry symbolic importance.
It would demonstrate that Samsung Foundry can potentially serve major domestic technology companies, including businesses that compete with Samsung in other markets.
The semiconductor industry is ultimately driven by technical capability, production capacity, reliability, cost, and manufacturing efficiency.
Competition in televisions or home appliances does not necessarily prevent cooperation in chip fabrication.
The Project Is Connected to South Korea’s K-On-Device AI Semiconductor Initiative
The LG and CoAsia SEMI collaboration is reportedly part of the South Korean government-backed K-On-Device AI Semiconductor Technology Development project.
The broader initiative aims to accelerate the development of semiconductor technologies capable of running artificial intelligence directly on devices.
This is important because the technology industry is gradually moving away from an entirely cloud-dependent AI model.
Cloud AI remains extremely powerful, but it introduces challenges involving latency, bandwidth, operating costs, privacy, and dependence on internet connectivity.
On-device AI attempts to solve some of these problems.
Instead of sending every request to a remote data center, devices can process selected information locally.
For household technology, that could create faster responses and reduce dependence on constant cloud communication.
The Future of AI May Be Distributed Between the Cloud and the Device
The future is unlikely to be completely cloud-based or completely local.
Instead, artificial intelligence will probably operate across multiple layers.
Large and complex workloads may continue running in powerful cloud infrastructure.
Meanwhile, smaller and time-sensitive tasks could be handled directly on smartphones, appliances, vehicles, robots, and IoT devices.
This hybrid model is becoming increasingly important.
An AI refrigerator does not necessarily need to contact a distant cloud server every time it reads a temperature sensor.
A local low-power processor could handle simple analysis instantly.
More complicated operations could then be transferred to cloud systems only when necessary.
This architecture could reduce costs and improve efficiency.
LG Wants an Early Position in the Next AI Home Market
LG’s strategy appears focused on securing an early position in the emerging market for AI-powered homes.
The smart home industry is evolving beyond simple connected devices controlled through smartphone applications.
The next generation of systems will likely attempt to understand context.
They may recognize environmental conditions, usage patterns, energy consumption, and interactions between multiple appliances.
Artificial intelligence could eventually coordinate these systems.
A home might automatically reduce energy consumption during periods of low activity.
Appliances could anticipate maintenance needs.
Devices could communicate with each other to improve efficiency.
However, none of this becomes practical without efficient hardware.
Software receives most of the attention when discussing AI, but semiconductors will determine how widely AI can actually be deployed.
The KRW 31 Billion Development Budget Shows Serious Investment
The specific project involving LG and CoAsia SEMI reportedly has a total development budget of KRW 31 billion.
That funding is expected to support the development of the semiconductor technology and related optimization work.
CoAsia NEXELL is also expected to contribute to chip design and foundry process optimization.
The investment demonstrates that the project is more than a simple experiment.
Developing custom AI-focused silicon requires substantial financial resources.
Engineers must design the architecture, integrate semiconductor intellectual property, test performance, reduce power consumption, and prepare the design for mass manufacturing.
Each stage can introduce technical challenges.
A chip must not only function correctly.
It must also operate efficiently, remain reliable, and be economically viable for integration into consumer appliances.
The Larger KRW 800 Billion Initiative Extends Through 2030
The broader K-On-Device AI Semiconductor Technology Development initiative reportedly involves approximately KRW 800 billion in investment and runs through July 2030.
Several major South Korean companies are participating in the wider initiative.
These include Daedong, Doosan Robotics, Hyundai Motor, and Korea Aerospace Industries.
The diversity of participating companies is particularly significant.
Artificial intelligence chips will not be limited to consumer electronics.
Agricultural machinery, robotics, automobiles, aerospace systems, industrial equipment, and smart infrastructure could all benefit from efficient on-device AI.
This means South Korea is attempting to build semiconductor capabilities that extend across multiple industries.
Automobiles and Robots Could Benefit From Similar Technology
The same principles behind ultra-low-power AI chips can be applied beyond the home.
Robots need to process information quickly while operating within strict energy limits.
Vehicles increasingly require local computing for sensors, driver assistance, navigation, and intelligent systems.
Agricultural machinery could use AI to analyze environmental conditions and automate certain operations.
Aerospace systems require highly efficient computing environments where reliability and power consumption are critical.
The K-On-Device AI initiative therefore appears to address a much larger technological transformation.
The goal is to move artificial intelligence closer to the physical world.
South Korea Is Strengthening Its Domestic Semiconductor Ecosystem
South Korea already holds an extremely important position in the global semiconductor industry.
Samsung is one of the
However, the semiconductor ecosystem involves much more than memory chips.
Chip design, foundry manufacturing, packaging, AI accelerators, sensors, intellectual property, software, and equipment all matter.
Government-backed programs can help smaller technology companies participate in areas that would otherwise require enormous financial resources.
The LG project could become an example of how large corporations, semiconductor specialists, and government initiatives can work together.
A Domestic Supply Chain Could Offer Strategic Advantages
Using domestic semiconductor partners could provide several advantages for South Korean companies.
Supply chains can potentially become easier to coordinate.
Engineering teams may be able to collaborate more closely.
Government-supported projects can encourage domestic innovation.
Companies may also reduce some dependence on international supply chains.
This does not mean global semiconductor partnerships will disappear.
TSMC, Samsung, Intel, and other manufacturers will continue operating within an interconnected global industry.
However, governments increasingly view semiconductor capability as a strategic national asset.
The COVID-era supply chain disruptions and continuing geopolitical tensions have made this issue even more important.
What Undercode Say:
This Is More Than a Samsung-LG Business Deal
The most interesting part of this story is not simply that LG may use Samsung Foundry.
The deeper significance is that competition is becoming less important than technological specialization.
Samsung and LG can fight aggressively in the television market.
They can compete for consumers buying appliances.
Yet Samsung can still manufacture chips that help LG build better products.
That is the new reality of the semiconductor economy.
The Real Battle Is Moving Inside the Home
The future smart home will not be won only through beautiful hardware.
It will be won through intelligence operating quietly inside appliances.
Consumers may never know the name of the chip inside their refrigerator.
But that chip could determine how efficiently the appliance operates.
It could influence energy consumption.
It could process AI workloads.
It could manage sensors.
It could become the invisible brain behind the product.
Samsung Foundry Gains Strategic Value From Domestic Customers
Winning a major domestic technology customer could be strategically valuable for Samsung Foundry.
Foundry manufacturing depends heavily on trust.
Chip customers need confidence in production capacity and technical reliability.
Every successful manufacturing relationship can strengthen a
If Samsung can demonstrate effective collaboration with companies across multiple industries, its ecosystem becomes more attractive.
LG Is Trying to Avoid Being Only an Appliance Manufacturer
LG understands that traditional appliances are becoming increasingly commoditized.
A refrigerator is no longer judged only by cooling performance.
Consumers increasingly expect connectivity, automation, energy optimization, and intelligent features.
The next competitive advantage could come from AI processing.
Custom chips allow companies to optimize hardware specifically for their own products.
That could give LG greater control over performance and power consumption.
Ultra-Low-Power AI Is the Most Important Technical Detail
The phrase ultra-low-power deserves special attention.
AI can consume enormous computing resources.
That approach works inside data centers.
It does not always work inside a washing machine or refrigerator.
Consumer appliances require efficient processors capable of operating for years.
The semiconductor industry must therefore make AI smaller, cheaper, and more energy efficient.
This is where specialized IoT silicon becomes important.
Always-On Devices Create Both Opportunities and Risks
Always-on sensing can make technology significantly more useful.
However, it also creates cybersecurity and privacy challenges.
A device that continuously monitors its environment becomes a potential target.
Attackers could attempt to compromise sensors.
They could exploit vulnerable firmware.
They could target cloud connections associated with the appliance.
The more intelligent a home becomes, the larger its potential attack surface becomes.
Security Must Be Designed Into the Silicon Strategy
AI appliances cannot rely only on software updates for security.
Hardware-level protections will become increasingly important.
Secure boot mechanisms can help prevent unauthorized firmware.
Hardware-backed cryptographic keys can protect sensitive information.
Trusted execution environments can isolate important processes.
Security architecture should be part of chip development from the beginning.
Samsung and LG Could Become Part of a Larger Semiconductor Network
This project could represent the beginning of deeper industry cooperation.
South Korean companies may increasingly connect through shared semiconductor development programs.
Large manufacturers can provide production capabilities.
Smaller design companies can provide specialized engineering.
Government programs can reduce financial barriers.
The result could be a stronger domestic innovation network.
On-Device AI Could Reduce Cloud Costs
Cloud computing is powerful, but it is expensive.
Every AI request processed in a data center consumes infrastructure resources.
If simple tasks can run directly on devices, companies can reduce unnecessary cloud workloads.
This could become economically important as billions of connected devices adopt AI features.
Efficient local chips may therefore provide financial advantages as well as technical ones.
The Semiconductor Race Is Becoming Industry-Specific
The future will not depend on one universal AI processor.
Different industries need different hardware.
A smartphone requires one type of optimization.
A robot requires another.
A vehicle has different requirements.
A refrigerator requires extremely low power consumption.
This creates opportunities for specialized semiconductor design.
LG’s reported chips fit directly into this trend.
The South Korean Government Is Thinking Long-Term
The initiative extending through 2030 shows a long-term strategy.
Semiconductor ecosystems cannot be built in a few months.
Research takes years.
Chip design takes time.
Manufacturing processes require optimization.
Companies need time to transform prototypes into commercial products.
Long-term funding is therefore essential.
The Biggest Winner Could Be the Entire South Korean Technology Ecosystem
If projects like this succeed, the benefits could extend beyond Samsung and LG.
Semiconductor designers could gain experience.
Manufacturing companies could receive additional business.
AI software companies could develop new platforms.
Robotics and automotive companies could benefit from related technology.
The ecosystem effect could be more valuable than any individual chip.
But Execution Will Matter More Than Announcements
Government budgets and corporate partnerships sound impressive.
The real test will be execution.
Can the chips meet their power targets?
Can they be manufactured economically?
Can LG integrate them successfully into consumer products?
Can the devices remain secure?
These questions will determine whether the project becomes commercially important.
The Smart Home Is Becoming a Semiconductor Market
The most important long-term lesson is simple.
The home appliance industry is becoming a semiconductor industry.
Every major appliance is gradually turning into a connected computing platform.
The companies that control efficient hardware may gain a significant advantage.
Samsung understands semiconductors.
LG understands appliances.
Combining those strengths could create an unexpectedly powerful model.
✅ The reported project is connected to South Korea’s broader K-On-Device AI semiconductor development initiative, which is intended to advance efficient AI processing directly on devices.
✅ LG has historically depended on external semiconductor manufacturers because it does not operate a large advanced semiconductor fabrication business comparable to Samsung Foundry.
✅ The claim that Samsung Foundry could manufacture LG-related IoT chips is based on reporting cited in the original article, meaning the reported collaboration should still be distinguished from a fully detailed public manufacturing agreement unless officially confirmed by the companies involved.
Prediction
(+1) South Korea Could Become More Aggressive in On-Device AI Development
LG and other appliance manufacturers are likely to increase investment in custom AI chips as smart devices require faster and more efficient local processing.
Samsung Foundry could pursue additional domestic customers as South Korea expands government-backed semiconductor programs through the end of the decade.
Always-on AI features could become increasingly common inside refrigerators, air conditioners, washing machines, robots, and other connected devices.
Specialized low-power processors may become one of the most important competitive technologies in the future smart home market.
Deep Analysis
The Semiconductor Supply Chain Behind an AI Appliance
A modern AI appliance depends on multiple layers of technology.
The process can be simplified into the following chain:
LG Product Requirements
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CoAsia SEMI Chip Architecture and Design
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Chip Verification and Optimization
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Samsung Foundry Fabrication
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Packaging and Testing
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LG AI Appliance Integration
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Firmware and AI Software Deployment
Engineers Could Analyze the Linux Environment Supporting IoT Development
Linux remains deeply important across embedded systems, IoT development environments, servers, and semiconductor engineering workflows.
Developers can inspect system architecture using:
uname -a
To identify processor architecture:
lscpu
To inspect memory usage during AI development:
free -h
To monitor running processes:
top
or:
htop Developers Can Inspect Hardware Connected to an IoT Development System
USB and connected devices can be reviewed using:
lsusb
PCI hardware can be inspected using:
lspci
Kernel messages can be monitored with:
dmesg | tail -50
These commands can help engineers understand how sensors, accelerators, development boards, and connected hardware interact with the operating system.
Network Security Will Be Critical for Always-On AI Appliances
IoT engineers can inspect listening network services using:
ss -tulpn
Network interfaces can be reviewed with:
ip addr
Active routes can be examined with:
ip route
An always-connected appliance should expose only the services it genuinely requires.
Every unnecessary network service increases the potential attack surface.
Firmware Integrity Should Become a Core Security Requirement
Engineers working with Linux-based IoT environments can review kernel and boot information using:
cat /proc/cmdline
They can inspect loaded kernel modules with:
lsmod
System logs can be reviewed through:
journalctl -p warning
Secure boot, signed firmware, cryptographic verification, and controlled update systems should become standard elements of AI appliance security.
The Final Technical Challenge Is Balancing Intelligence and Efficiency
The biggest engineering challenge will not simply be making appliances intelligent.
It will be making them intelligent without dramatically increasing power consumption, hardware costs, complexity, or cybersecurity risks.
LG’s reported IoT semiconductor project represents a larger shift happening across the technology industry.
Artificial intelligence is leaving the data center.
It is moving into appliances.
It is moving into robots.
It is moving into vehicles.
It is moving into industrial equipment.
And as that transition accelerates, the companies capable of designing, manufacturing, and securing efficient AI chips may gain control over the next major generation of connected technology.
The reported Samsung-LG collaboration is therefore worth watching closely.
Two longtime rivals may be discovering that, in the semiconductor era, cooperation can sometimes be just as strategically valuable as competition.
Clarify the collaboration’s confirmation status
Reduce repeated sections and predictions
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