- 26 "AI Autonomous Manufacturing Leading Projects" to be released this year, 3.7 trillion won in public and private investment expected
– 26 local governments, 119 companies and institutions, etc., government, region, and private-public cooperation system in operation
– Productivity increased by 30%, product defects decreased by 50%, and energy consumption decreased by 10% as a leading project
- Expanding to 27 leading projects by 200, focusing on artificial intelligence (AI) autonomous manufacturing alliances
The AI autonomous manufacturing pilot project, which aims to dramatically increase productivity by applying AI to the manufacturing industry and solve pressing issues such as the decline in the productive population and carbon reduction, is starting in earnest. On Monday, October 10.28, the Ministry of Trade, Industry and Energy held the “AI Autonomous Manufacturing Pilot Project Agreement Ceremony” with Minister Ahn Deok-geun in attendance and announced 26 projects to be promoted this year.
Leading Korean manufacturing companies such as Hyundai Motor Company, GS Caltex, Samsung Heavy Industries, HD Hyundai Mipo, POSCO, EcoPro, Korean Air, Kolon, DN Solutions, Sampyo Cement, and Jeju Samdasoo participated in the pilot project. Considering the great interest of the industry, with 10 applications for the initial 213 projects, MOTIE expanded the number of projects from 10 to 26.
Significance of AI Autonomous Manufacturing Leading Project
The reason so many companies are participating in the project is because incorporating AI into manufacturing sites is an essential survival strategy for the future.
➊priority AIIt is an effective means of responding to the decline in the productive population and changes in population structure.. The textile industry, which Kolon belongs to, is an industry with a rapidly aging population (50% over 53 years old), and the retirement of skilled workers was accelerating the shortage of manpower and the discontinuation of production technology. Kolon plans to use AI to detect and control the condition and quality of equipment in real time, while promoting process automation through unmanned logistics systems. In the shipbuilding industry, the shipbuilding piping process is also experiencing difficulties due to the retirement of skilled welders, and most processes depend on manual work. Samsung Heavy Industries plans to automate the entire process from pipe cutting to welding using AI, and build a robot system equipped with AI-based variable welding conditions.
➋AIIf we introduce human errorReduces waste and enables precise quality control. In particular, the need is great in cutting-edge tech fields such as batteries, aviation, defense, and semiconductors. Secondary batteries have become even more important to secure quality due to electric vehicle fires. EcoPro, the world's No. 1 cathode material company, plans to analyze process data in real time through AI to prevent errors in the process in advance and automatically control equipment to secure the best quality. Meanwhile, quality assurance has become an issue in the aircraft industry due to the Boeing bolt joint failure accident earlier this year. Korean Air plans to introduce industrial robots to the aircraft fuselage assembly process through AI and automate work instructions and quality inspections.
➌AIBy utilizing it, you can respond to rapidly changing market trends such as consumer needs.. Hyundai Motor Company plans to build a flexible, multi-product production system that uses AI and robots to optimize process planning and scheduling, and to adjust logistics and production routes in real time to meet demand, producing multiple vehicle types on a single production line. GS Caltex plans to analyze and control key variables such as temperature, pressure, and flow rate in the process in real time using AI, and adjust the production ratio according to market prices for gasoline, diesel, and kerosene, thereby maximizing profitability and reducing carbon emissions.
➍AIeffectively contributes to carbon reduction. In particular, the introduction of AI is essential in energy-intensive industries such as oil refining, steel, and cement. Sampyo Cement plans to achieve its carbon neutrality goal and reduce operating costs by finding ways to increase energy efficiency and reduce carbon emissions through real-time monitoring and analysis of processes using AI.
❺AIcan also ensure workplace safety. In particular, steel production is an industry where work is done at high temperatures and pressures of over 2000°C, and safety in the workplace is important due to risks such as gas generation. POSCO plans to introduce AI autonomous manufacturing to high-risk facilities such as ironmaking, furnaces, and rolling processes to secure worker safety while also improving product quality.
❻AIcan contribute to improving productivity and reducing costs in all industries.. Jeju Samdasoo (JPDC) inspects 1 billion tangerines a year, and selects more than 45 million of them as ‘ugly produce (for fruit drinks)’. However, since it relies on visual inspection by workers, it is inefficient and has many errors. Samdasoo is building a system that uses robots to select low-quality products classified through machine vision AI, and then automatically packages the concentrate.
Results of selection of 26 leading projects
* Some assignments have been finalized, but objections are in progress due to scheduling issues.
The 26 projects selected by MOTIE involved 12 companies from 26 industries including semiconductors, automobiles, and shipbuilding, as project managers. The 26 companies consist of 9 large corporations and 17 medium-sized and small-sized companies.
The total investment cost of the 26 pilot projects is approximately 3.7 trillion won, and the government and local governments will support a total of 4 billion won over four years. In particular, local government matching was optional, not mandatory, but local governments prepared an emergency budget to match local government costs for all 1,900 projects. Local governments are concerned about the disappearance of the productive population and the decline of local industries, and plan to establish a new leap forward for local specialized industries through this pilot project.
MOTIE announced that these pilot projects are expected to result in productivity increases of more than 30%, manufacturing cost reductions of more than 20%, product defect reductions of more than 50%, and energy consumption reductions of more than 10%.
future plans
MOTIE plans to expand the number of projects to 26 by 27, starting with 200 this year. Domestic investment of more than 200 trillion won is expected through the 20 projects, and leading projects in the future will be "AI Autonomous manufacturing Alliance"Centered aroundMOTIE formed an alliance in July so that the pilot project can be expanded systematically and effectively across all industries and sectors, rather than being promoted sporadically and one-off, and 7 companies and organizations from 12 industries are participating. (See Attachment 153) MOTIE plans to prepare an industry-specific roadmap and, through this, systematically and vertically expand the project from large corporations within the alliance to medium-sized and small-sized enterprises that are 3st to 1th tier vendors.
In addition, MOTIE can be utilized by companies that do not participate in alliances or leading projects. "AI Manufacturing Foundation Model"We plan to develop and distribute it.
* Foundation model: A large-scale artificial intelligence model that has learned knowledge and patterns using extensive data, such as Open AI's GPT, and can be used to create various applications. A manufacturing foundation model refers to a foundation model specialized for manufacturing so that manufacturing companies can use it in production sites.
A total of 100 billion won will be invested in development starting this year, and research institutes such as Saenggiyeon and Jeonjayeon, which are in charge of the 12 industry sectors of the alliance, are all participating. These institutions plan to collaborate on creating a foundation model based on the data and technology acquired through each leading project, and distribute it to manufacturing sites as early as 26. It is expected that manufacturing companies will be able to build their own specialized AI manufacturing systems that fit their processes based on the foundation model.
* When data from actual manufacturing sites are input into the foundation model, AI produces results desired by the user, such as process optimization, quality inspection, and equipment diagnosis.
Local governments, public institutions, etc. also participate in the spread of AI autonomous manufacturing
In addition to the government, companies, and research institutes participating in the AI Autonomous Manufacturing Alliance, local governments and public institutions also plan to contribute to the spread of AI in manufacturing sites. First, local governments will discover leading projects centered on regional specialized industries and continue financial support such as local government matching. In addition, they will promote the establishment of AI autonomous manufacturing hub centers (Gumi, Changwon, Busan, etc.) for full-scale spread of AI in the region. The Industrial Complex Corporation supports AI manufacturing innovation of companies located in the industrial complex through the Process Innovation Simulation Center (product design), Process Module Center (process design), and Innovation Data Center (data analysis) that can be used jointly by companies located in the industrial complex. In addition, the Korea Trade Insurance Corporation plans to provide trade finance worth 5 trillion won over five years for AI autonomous manufacturing-related projects of companies participating in the alliance.
Minister Ahn Deok-geun announced plans to “make South Korea’s manufacturing industry younger and more dynamic through pilot projects and spread AI autonomous manufacturing to every corner of industrial sites,” adding that to this end, he would “❶ prepare a roadmap for each industry and expand pilot projects to 27 by 200, ❷ disseminate the AI manufacturing foundation model so that even companies that do not participate in the project can introduce their own AI, and ❸ mobilize all infrastructure such as technology, manpower, equipment, and budget owned by local governments and industrial complexes to speed up the spread of AI.”
Minister Ahn continued, “I expect that the pilot project confirmed today will be successfully expanded and create a new breakthrough for growth through innovation in the industrial sector of the Republic of Korea.”
Source: Ministry of Trade, Industry and Energy