One of the foremost challenges is the increasing complexity of semiconductor design required to meet the computational demands of AI algorithms. As AI models become more sophisticated, they require chips with higher performance and specialized architectures, pushing the limits of current manufacturing capabilities. However, integrating AI models into the semiconductor industry presents significant challenges related to complexity, data management, and ethical considerations. The intricate and highly precise nature of semiconductor manufacturing requires AI systems that can adapt to dynamic environments while maintaining exacting standards. Data quality and management are critical, as AI models rely on vast amounts of high-quality, diverse data, yet issues like data silos and privacy concerns can impede effective utilization. Additionally, the potential for algorithmic bias and lack of transparency in AI decision-making raises ethical and compliance issues, especially with evolving regulations like ISO/IEC 42001:2023 and NIST's AI Risk Management Framework. Effective AI governance is essential to address these challenges, ensuring that AI integration enhances innovation and efficiency without compromising ethical standards, security, or regulatory compliance.