Samsung and LG are rival South Korean tech giants that compete in several segments, including TVs, monitors, laptops, home appliances, and OLED displays. While it is rare for them to do business together, the two companies seem to be preparing to collaborate on LG's upcoming chip.

A report from TheElec claims that LG Electronics could have its new Internet of Things (IoT) chips manufactured by Samsung Foundry. LG is reportedly working on two IoT chips for its AI home appliances. CoAsia SEMI will design the chips based on direction and specification inputs from LG, while Samsung Foundry will handle the fabrication process.

Since LG lacks in-house semiconductor manufacturing capabilities, it generally relies on TSMC to produce its chips, including the ones related to government-backed projects. However, for this IoT project, LG is pivoting to collaborate with Samsung for its manufacturing needs.

The partnership between LG and CoAsia SEMI is part of the South Korean government-led K-On-Device AI Semiconductor Technology Development project. The chips designed under this initiative are intended to be ultra-low-power system-on-chips (SoCs) that support always-on sensing.

By cutting costs and reducing power consumption, LG aims to secure an early position in the next-generation AI home platform market with these upcoming IoT chips.

This specific project by CoAsia SEMI and LG has a total development budget of KRW 31 billion, and the overall chip design and foundry process optimization will also receive support from CoAsia NEXELL.

Other South Korean brands, including Daedong, Doosan Robotics, Hyundai Motor, and Korea Aerospace Industries (KAI), are also participating in the broader KRW 800 billion K-On-Device AI Semiconductor Technology Development initiative, which runs through July 2030.