Samsung Electronics, LG Electronics, SK Telecom and five other Korean companies announced on July 27 that they will form chip alliance and jointly participate in the government's project, called System on Chip Development Project, the Korea IT Times reported on July 29. Other five Korean companies include Samsung Electo-mechanics, LG Display, SK Telesis, Pantech, and Celrun.

In 2010, the Korean government is expected to earmark 6.8 billion Won (US5.5 million$; US$1 = 1232.5 Won) for the project, while the private sector is estimated to invest 6.5 billion Won (US$5.3 million), according to the same source. Through the alliance, Samsung Electronics and LG Electronics will team up for the first time to produce global digital TV receiver chips, while SK Telecom will join hands with Korean chipmaker Xronet to co-produce SoC (System on Chip) for Smartphones. Meanwhile, LG will use Samsung's chip facility to produce chips for use in digital TVs, the Yonhap News Agency reported on July 27.