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LG plans two ultra-low-power AI appliance chips with Samsung Foundry, an unusual break from its usual TSMC manufacturing relationship.
Image: SamMobile Samsung Foundry may manufacture two AI-focused IoT chips for LG Electronics, putting the South Korean rivals in an unusual supplier relationship. LG will define the chips' specifications and development direction. CoAsia SEMI will handle the chip design and process optimization before Samsung fabricates the silicon.
The project was disclosed on August 31, 2026, as part of South Korea’s government-backed K-On-Device AI Semiconductor Technology Development program. The chips are intended for LG’s AI-enabled home appliances, where ultra-low power consumption and always-on sensing matter more than the high peak performance associated with data-center processors.
The project details published by TheElec specify that the work covers two Internet of Things system-on-chips. CoAsia SEMI will lead the overall design, with engineers from CoAsia NEXELL, a fabless chip company in the same group, expected to support the effort. Samsung Electronics' foundry operation will manufacture the finished designs.
LG has generally used TSMC to fabricate chips for its home appliances, including chips connected to some government-funded programs. The new project does not establish that LG is abandoning TSMC or moving its broader appliance-chip portfolio to Samsung. It gives Samsung a role in a product category where LG controls the end appliance and the chip requirements.
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“Even for a government-funded project, it is unusual for LG Electronics to use Samsung Electronics' fab.”
What the project covers #
The available details describe an SoC-development effort, not a finished product launch. Neither LG nor CoAsia SEMI has disclosed the chips' process node, CPU or accelerator architecture, memory configuration, clock speeds, packaging, software stack, or target appliance models. There is also no announced commercial product, release date, or US availability.
The technical target is more specific than a generic “AI chip.” The SoCs are designed for always-on sensing while reducing power and cost. That points to workloads that need to monitor appliance inputs continuously without keeping a higher-power processor active, although the supplied project material does not identify the sensors, inference models, precision formats, or performance targets involved.
LG is the customer rather than the chip manufacturer. Its role is to provide the specifications and set the development direction. CoAsia SEMI converts those requirements into silicon designs and tunes them for the manufacturing process. Samsung is responsible for fabrication, but it does not own the appliance platform or the chip architecture.
| Program or workstream | Participants and purpose | Budget | Timeline |
|---|---|---|---|
| LG AI home-appliance chip project | LG Electronics, CoAsia SEMI and CoAsia NEXELL; two IoT SoCs | KRW 31 billion | July 2026–December 2030 |
| K-On-Device AI Semiconductor Technology Development | Government program covering automotive, IoT, home appliances, machinery, robots and defense | About KRW 800 billion | 2026–2030 |
The KRW 31 billion figure applies to LG’s specific two-chip development project, including design and related work. It is not the amount Samsung will receive, and the material does not disclose how the budget is divided among LG, CoAsia SEMI, CoAsia NEXELL, and Samsung Foundry. The broader K-On-Device program has a budget of about KRW 800 billion and includes other participating customers such as Hyundai Motor, Doosan Robotics, Daedong, and Korea Aerospace Industries.
A foundry decision, not a consumer launch #
For Samsung, the project could lead to additional foundry business beyond Samsung-branded devices. The company is already expanding semiconductor relationships across memory, manufacturing, and advanced packaging. Our earlier coverage described a Samsung-Broadcom partnership valued at more than $200 billion by 2030. This LG engagement is smaller and more targeted, but it involves a rival that has historically relied on an outside foundry for much of this type of chip.
For LG, Samsung offers a domestic manufacturing option within a program intended to build South Korea’s on-device AI capabilities. That may simplify coordination between a South Korean appliance maker, a local design house, and a local foundry. The supplied documents do not state that Samsung offered a lower price, a particular yield target, or a process advantage, so the commercial reason for the change is not established.
The project also fits the government program’s scope: AI semiconductor development for vehicles, appliances, IoT systems, industrial machinery, robots, and defense equipment. Its stated aim is to support new application markets and give participating companies an early position in next-generation on-device AI platforms. That is a policy objective, not evidence that the LG chips have entered production.
CoAsia SEMI CEO Shin Dong-soo said the company expects the LG work to lead to more business:
“Based on our cooperation with LG Electronics, we will seek additional business opportunities in AI home products and various application markets.”
The timeline also needs precision. The primary project description places the work from July 2026 through December 2030; it does not say the chips will ship in July 2030. At this stage, the confirmed milestones are the development program and the planned Samsung Foundry manufacturing relationship. A commercial appliance, production volume, process technology, and customer-facing launch date have not been announced.
Frequently asked questions #
Will Samsung manufacture LG’s new appliance chips?+ #
The project documents say the two IoT chips will be manufactured using Samsung Electronics' foundry. They do not disclose the Samsung process node or production volume.
When will LG’s AI appliance chips ship?+ #
No commercial shipping date has been announced. The development project runs from July 2026 through December 2030.
Are LG’s chips moving from TSMC to Samsung?+ #
LG has primarily used TSMC for home-appliance chips, but this project uses Samsung Foundry. The material does not establish a broader manufacturing switch.
Tomas Berg Computing Editor
Tomas lives in the terminal. He covers chips, laptops, and operating systems with a focus on performance and efficiency. He reads kernel changelogs the way other people read fiction, and he's always on the hunt for the perfect mechanical keyboard switch. If it processes data, Tomas has an opinion on it.