Samsung Electronics to develop semiconductor-focused AI model with Europe's top AI firm Mistral AI

Samsung Electronics has announced plans for a large equity investment in France's Mistral AI, a leading player in Europe's AI ecosystem. The two companies also plan a joint project to develop an AI model specialized for semiconductor manufacturing.

As semiconductor design and manufacturing grow increasingly complex, the company aims to shorten development cycles by drawing on Mistral AI's solutions, boosting the pace of innovation across the industry.

Samsung Electronics signed the strategic partnership with Mistral AI on Tuesday (local time) in Paris, where President Lee Jae Myung and French President Emmanuel Macron held their summit.

The two companies agreed to combine semiconductor technology and manufacturing data from Samsung Electronics' Device Solutions (DS) Division with Mistral AI's AI models. Together, they aim to build an AI model specialized for semiconductors.

Samsung Electronics will use several of Mistral AI's solutions, including its large language model Mistral Large, to develop its own AI model optimized for data unique to its semiconductor operations.

The company plans to apply the model in phases to data analysis, defect prediction and process optimization at semiconductor design and manufacturing sites. This is expected to shorten development time while improving manufacturing efficiency and quality.

Samsung also plans to build an AI platform and operating system optimized for semiconductor work. The AI model will run on an on-premises basis within Samsung's internal infrastructure. This will allow the company to safely use semiconductor-related data — a core national technology — without transferring it outside the company.

Samsung Electronics plans to expand its cooperation with Mistral AI across its entire semiconductor business, including memory chips, foundry and logic operations. The company also aims to eventually build an AI-based semiconductor ecosystem connecting customers and partners.

The company plans to continue identifying AI use cases optimized for the semiconductor industry and expand the scope of cooperation into the global market.

Mistral AI was founded in 2023 by CEO Arthur Mensch, who was born in 1992. It is regarded as Europe's answer to a global AI market long dominated by the United States and China.

The company has the technology to build customized AI models in on-premises environments for industries that require high levels of data security, such as finance, manufacturing and energy.

Mensch sat next to Samsung Electronics Chairman Lee Jae-yong at a state luncheon for Macron's visit to South Korea, held at Cheong Wa Dae in April.

Meanwhile, Samsung Electronics made an equity investment of 3 billion euros ($3.49 billion) in Mistral AI, joining the EU Scale-Up Europe Fund and PSG Equity. The EU fund is managed by private equity fund EQT. The investment lays the groundwork for long-term technology cooperation and joint projects between the two companies.

Building on the partnership, Samsung Electronics plans to accelerate the AI transformation of all its business divisions, including semiconductors, and strengthen its competitiveness in the global AI semiconductor market.

Jun Young-hyun, head of Samsung Electronics' Device Solutions Division, said, "As the complexity of semiconductor design and manufacturing rapidly increases, the ability to safely and precisely harness vast amounts of data through AI is emerging as a core competitive advantage." He added, "Together with Mistral AI, we will build AI models and platforms specialized for the semiconductor industry and set a new standard for AI-driven innovation in semiconductors."

Arthur Mensch, CEO of Mistral AI, said, "From semiconductors to software, AI is redefining how advanced technology is created." He added, "We are delighted to be able to work with Samsung Electronics based on Mistral AI's semiconductor capabilities, and through this cooperation, we hope to contribute to progress across semiconductor design, manufacturing and the global AI value chain."