Industry ministry sets 2030 target for 500 AI factories

The industry ministry said that 42 early sites in its AI Factory project raised productivity by an average 30.1 percent as it broadens its manufacturing AI strategy.

The ministry said the strategy responds to a shrinking working-age population, an aging skilled workforce and slower growth in labor productivity and manufacturing.

The Ministry of Trade, Industry and Energy has supported AI adoption at 170 sites through the project. A review of the 42 early sites found defect rates had fallen by an average 15.5 percent.

"Because gains in productivity and lower defect rates have been confirmed on factory floors, we will ensure that proven models spread quickly to small and medium-sized companies, mid-sized firms and regional industrial complexes," Minister Kim Jung-kwan said.

The ministry cited Shinhan Diamond, where an AI automatic inspection system cut quality-inspection time by 33 percent, and SurplusGlobal, where AI in a process for reclaiming semiconductor equipment lifted productivity 66.7 percent.

In autos, Asan Sungwoo Hitech cut quality-inspection time by 90 percent after introducing an unmanned autonomous manufacturing system for electric-vehicle batteries, while Hwashin reduced defects by 20 percent with a predictive-maintenance system in its battery-case production process. HD Hyundai Samho increased productivity by 50 percent by using AI-based autonomous welding and inspection in shipbuilding, the ministry said.

The M.AX Alliance, which brings together manufacturers, AI companies, universities and research institutions, has grown to more than 1,500 participating organizations. The program will extend beyond shop floors to AI-equipped products and industrial complexes. The ministry has formed MINI alliances involving local companies and universities at 10 AI demonstration industrial complexes and plans to launch them at three more selected this year.

By 2030, the ministry aims to build 500 AI factories. It will also develop and test core technology for full-stack AI factories, where AI operates the entire manufacturing process without human intervention.