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Korean Industrial Insight No. 27 of AI, Semiconductors, Batteries, Electric vehicles, Robot, and Bio |
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2026-08-03 |
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Ⅰ. AI INDUSTRY TRENDS
1. Samsung Electro-Mechanics Signs KRW 300 Billion Supply Contract with Global Company for MLCCs for AI Servers
- Supplies for one year in 2027
- Negotiating additional long-term supply contracts with multiple global customers
Samsung Electro-Mechanics announced on the 23rd that it has signed a supply contract worth approximately 300 billion won with a major global company for multilayer ceramic capacitors (MLCCs) used in artificial intelligence (AI) servers.
The contract period is one year, from January 1, 2027, to December 31, 2027. Samsung Electro-Mechanics plans to supply high-performance MLCCs to be installed in the customer’s AI servers and data center systems.
MLCCs are key components that store electricity and then supply it stably to semiconductors to ensure smooth operation, while also eliminating signal interference (noise) to enhance the performance and stability of electronic devices.
This contract reflects Samsung Electro-Mechanics’ MLCC design technology, product reliability in high-temperature and high-voltage environments, and its production and quality management capabilities to meet the demands of major global customers.
Samsung Electro-Mechanics maintains a leading global position with a market share of over 40% in the MLCC market for AI servers. MLCCs for AI servers not only require more than 10 times the quantity compared to general servers (up to 600,000 units per server rack) but must also meet strict reliability standards, including ultra-compact size, ultra-high capacity, high-temperature and high-voltage resistance, and bending strength, which limits the number of suppliers capable of meeting these requirements.
Samsung Electro-Mechanics is currently discussing mid- to long-term MLCC supply plans with numerous global customers. The company plans to secure a stable demand base by expanding long-term supply contracts and accelerate the shift toward a portfolio centered on high-value-added products.
Samsung Electro-Mechanics is continuously expanding long-term supply contracts with global customers, focusing on components for AI servers. Previously, in May, Samsung Electro-Mechanics signed a long-term supply contract worth approximately 1.5 trillion won with a global customer for silicon cone capacitors, followed by a supply contract worth approximately 450 billion won with a global big tech company in June for MLCCs used in AI servers.
2. Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon, “Telecom Companies Are Also AI Companies” … Reviewing Expansion of Tax Credits
- Calls for transition to AI infrastructure and platforms… Expansion of investment in 6G and AI-RAN
- Three major telecom companies respond… Launch of public-private consultative body in August and discussions on AIDC support
Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon defined telecommunications companies as “AI infrastructure and platform companies” and called for investment in next-generation networks.
In response, the three major telecom companies presented investment plans for core infrastructure in the AI era, including 6th-generation mobile communications (6G), AI-RAN (Artificial Intelligence Radio Access Network), submarine cables, and the deployment of 5th-generation mobile communications (5G) in standalone (SA) mode.
The government and the industry agreed to launch a public-private consultative body in August to discuss institutional improvements and regulatory easing aimed at promoting network investment.
◇ Deputy Prime Minister Bae, “We Must Embark on Bold Investment and Change”… Three Major Telecom Companies Respond
On the 23rd, the Ministry of Science and ICT held a meeting with the chief executive officers (CEOs) of the three major telecom companies to discuss measures for upgrading networks in the AI era and stabilizing people’s livelihoods.
In his opening remarks, Deputy Prime Minister Bae Kyung-hoon emphasized, “Telecom companies are now more than just network providers; they are AI infrastructure and platform companies that tightly connect daily life and industrial sites to ensure AI operates continuously.”
“The issue is speed,” he said, urging the telecom industry to “embark on bold investments and changes to keep pace with the rapid advancement of technology.”
Along with the promotion of three major megaprojects, including AI data centers (AIDC), physical AI, and autonomous driving, he also urged the industry to join nationwide efforts to stabilize people’s livelihoods, given the unstable economic situation caused by factors such as volatility in international oil prices.
The three major telecom companies also emphasized their commitment to investing in the advancement of next-generation networks.
SK Telecom presented its vision for the evolution of future networks, including 6G and AI-RAN, and for strengthening AI competitiveness, while KT outlined plans to expand and diversify undersea cable capacity and secure competitiveness in low-Earth orbit satellite networks.
SK Telecom CEO Jung Jai-hun responded, “As a key pillar of the government’s three major megaprojects, we will fulfill our responsibilities and deliver strong results in AI, networks, and reforms to improve people’s livelihoods.”
Park Yoon-young, CEO of KT, expressed his ambition to propel Korea into becoming an Asian hub through a proactive 1 trillion won investment in submarine cables, and stated that the company would contribute to the additional supply of 1 gigawatt (GW) of AIDC by converting 3,500 base stations nationwide into AI edge infrastructure.
LG Uplus announced plans to complete the deployment of 5G SA and implement an AI-based autonomous network by the end of the year.
Hong Bumshik, CEO of LG Uplus, said, “We will establish the Paju AIDC as a reference facility for South Korea,” adding that the company would move swiftly to ensure it is operational starting next year.
◇ Public-Private Consultative Body to Launch in August… Review of Expanded Investment Tax Credits
The government and the three major telecom companies have agreed to form and operate a public-private consultative body starting in August to discuss a package of institutional improvements and regulatory easing aimed at promoting network investment. The goal is to announce the results of the discussions by the end of the year.
However, the government’s position is that more time is needed to formulate specific investment plans.
Choi Woo-hyuk, Head of the Information Protection and Network Policy Office at the Ministry of Science and ICT (MSIT), said during a background briefing that day, “For now, we have urged the swift implementation of existing plans,” adding, “We expect to discuss the scope and direction of investment through the public-private consultative body around the end of the year.”
In this regard, the three major telecommunications companies proposed to the government measures such as enacting subordinate regulations for AIDC, applying investment tax credits, creating public demand for new technologies, and establishing support policies for submarine cables.
Deputy Prime Minister Bae responded that the government is preparing measures, including the unification of AIDC licensing procedures and special regulatory exemptions, and that it will also review plans to expand investment tax credits.
Regarding the stabilization of people’s livelihoods, discussions focused on how the telecommunications sector could contribute amid high inflation.
The three major telecom companies will announce measures to enhance customer benefits in July, including expanding membership and partnership discounts in areas closely related to daily life and providing additional temporary benefits for youth and vulnerable groups.
Furthermore, to foster mutual growth with members of the telecommunications ecosystem, including the mobile phone distribution industry, MVNO sector, and ICT construction industry, they agreed to refrain from encouraging subscriptions to high-priced plans, continue improving wholesale rates, and expand business opportunities. They also agreed to cooperate with the government’s MVNO measures and the optimal rate notification system.
During the meeting, the companies also reviewed the status of implementation of the agreements reached at the previous meeting held in April.
They confirmed that key agreements, such as tariff plan reforms (including the expansion of the Data Peace of Mind Option (QoS) and the provision of additional voice and text services for senior users) and the phased implementation starting in June of priority transmission for emergency rescue communications by the National Fire Agency, are being steadily carried out, along with the operation of the Chief Information Security Officer (CISO) consultative body and the upgrade of subway Wi-Fi from LTE to 5G.
3. SKT Promotes Standardization of Robot Data Based on Digital Twins
- Establishing an AI training data integration system as a new ITU-T Project
SK Telecom is expanding its digital twin technology, which is accumulated in the field of manufacturing artificial intelligence (AI), to robotics and is moving to establish international standards in the field of physical AI.
SK Telecom announced on the 23rd that its proposal, “Robot Data Factory (RDF) Interoperability Structure and Method,” was adopted as a new standardization project at the International Telecommunication Union Telecommunication Standardization Sector (ITU-T) conference held in Geneva, Switzerland, from the 14th to the 22nd.
The core objective of this project is to establish standards for the systematic production and utilization of data required for AI training in intelligent robots, such as humanoids.
Robot AI requires large-scale, high-quality motion data to learn how to grasp or move objects and use tools. However, until now, there has been a limitation in compatibility due to differences in data formats and interfaces across robot models and platforms.
Accordingly, SK Telecom plans to standardize the roles of key functions within the RDF, data exchange methods, and integration structures to build an environment where functions can be easily connected, swapped, and expanded even across different robots and platforms.
SK Telecom explained that it has previously collaborated with SK Hynix to build a digital twin platform for manufacturing AI and is now expanding its business scope to include a robot learning platform that generates robot operation data based on this platform for use in AI training.
Donghee Choi, VP and Head of AI Strategy Office at SK Telecom stated, “With the adoption of this new standardization project, SKT has laid the groundwork to lead international standardization discussions by leveraging the digital twin and AI capabilities we have accumulated in the field of physical AI.” She added, “Moving forward, we will continue to lead international standardization in the robotics field based on our technological competitiveness spanning robot learning platforms and AI models.”
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. South Korea’s Defense Acquisition Program Administration Announces Strategy for Localizing Defense Semiconductors and Building an Industrial Ecosystem
- Rapid development of defense semiconductors to secure production infrastructure… Mandatory application in weapon systems
- Presents a vision for achieving technological self-reliance in defense semiconductors and securing a stable supply chain
The government is accelerating efforts to rapidly secure development and manufacturing capabilities for defense semiconductors and to build a systematic industrial ecosystem.
The Defense Acquisition Program Administration (DAPA) announced on the 23rd that it had reviewed a strategic plan for the localization of defense semiconductors and the creation of an industrial ecosystem with the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy at the 11th Meeting of Ministers of Science and Technology.
The strategy outlines plans to rapidly advance the development of defense semiconductors based on stable government demand, such as weapons system acquisition plans, and to mandate their application in weapons systems through government-led reliability testing and validation.
It also includes provisions to secure a production base for defense semiconductors by utilizing existing public and private fabs, and to support research and development (R&D) for manufacturing and mass production through private-public partnership fabs for the outsourced production (foundry) of defense semiconductors.
In addition, the Defense Acquisition Agency plans to promote the designation and nurturing of defense semiconductor businesses, foster the development of specialized personnel, and enhance the stability of the defense semiconductor supply chain and its technological competitiveness in a phased manner.
Until now, the domestic defense semiconductor industry has struggled to establish a stable supply chain and achieve technological self-reliance due to relatively weak domestic supply and demand infrastructure and a lack of core proprietary technologies.
In response, the Blue House and DAPA, among others, have been implementing policies to foster the defense semiconductor sector, including the enactment of the Defense Semiconductor Act, through the operation of a government-wide “Defense Semiconductor Development Task Force” since last October. DAPA explains that this draft development strategy was also formulated as part of these efforts.
The DAPA Administrator stated, “For ‘K-Defense’ to take another leap forward, it is essential to create a self-reliant ecosystem for defense semiconductors, which are core components of weapons systems,” adding, “With the announcement of this draft strategy, we will swiftly integrate the private sector’s outstanding advanced semiconductor capabilities into the defense sector.”
He added, “DAPA will go beyond simply localizing individual components and devote all its efforts to building a sustainable defense semiconductor ecosystem that covers the entire lifecycle, from design to production.”
2. Samsung Electronics ‘Goes All-In on AI Semiconductors’… Downsizing Non-Core Business Teams and Shifting Focus to Core Capabilities
- CSS implements voluntary retirement program… Staff to be reassigned to memory and other divisions
- “Strategy of selection and focus… Likely to focus on developing and mass-producing high-performance chips”
- A significant number of employees may be deployed to core memory and foundry operations
Samsung Electronics is accelerating efforts to strengthen its competitiveness in artificial intelligence (AI) semiconductors by reassigning personnel from low-profit, non-core businesses to key operations such as memory and foundry (semiconductor contract manufacturing).
Amid increasingly fierce competition in the AI semiconductor market, analysts say the company has adopted a “select and focus” strategy to concentrate its specialized semiconductor personnel in key areas such as development, process engineering, and mass production.
It is reported that Samsung Electronics began implementing its internal voluntary transfer (FA) program yesterday for personnel in the Compound Semiconductor Solutions (CSS) business team within its Device Solutions (DS) division.
The CSS business team was responsible for power semiconductors, which convert electricity, and light-emitting diodes (LEDs), among other businesses. However, due to low profitability, it is expected to scale back its operations in stages.
Questions regarding the sustainability of the business have been consistently raised both within and outside the industry.
The CSS business team is estimated to have a workforce of about 500 employees, and it is expected that a significant number of them will transfer to other business units within the DS division, such as memory and foundry, through this FA program.
This workforce realignment is seen as a sign of the company’s commitment to concentrating the DS Division’s capabilities on its core businesses—memory and foundry.
The Memory Business Division is focusing its efforts on enhancing competitiveness in next-generation high-performance memory, including expanding production and stabilizing processes for 6th-generation High Bandwidth Memory (HBM4) and developing 7th-generation “HBM4E.”
The company faces the challenge of developing next-generation memory faster than competitors such as SK Hynix and Micron, while also increasing its share of supply to big tech companies.
Since any delay in the development and mass production of next-generation memory could result in competitors capturing market share, it is crucial to proactively secure specialized talent and strengthen research and development (R&D) capabilities.
The Foundry Business Division must improve the yield (ratio of good products) of its cutting-edge 2-nanometer process and focus its efforts on securing orders from major customers.
It must also stabilize the mass production of Tesla’s “AI5” AI chip, which will soon begin at the Taylor plant in the U.S.
Since the CSS Business Team includes many employees with expertise in semiconductor R&D, it is highly likely that they will be transferred to the Memory and Foundry Business Divisions to serve as key personnel.
Analysts suggest this decision reflects the judgment that redeploying skilled internal personnel is more efficient than developing new talent through hiring, which requires a significant amount of time.
Under the FA system, CSS team members submit their resumes to the divisions they wish to be reassigned to; those divisions then assess their suitability for the role through document reviews and interviews to determine whether to accept them.
However, some employees are expected to remain in the CSS business team.
An industry official stated, “It is crucial to deploy specialized personnel in the right places for AI semiconductor development and mass production,” adding, “This measure demonstrates the company’s commitment to concentrating personnel and resources on future growth engines.”
3. Q2 Economic Growth Rate at 0.6%... Real GDI Growth Hits 38-Year High on the Back of Strong Semiconductor Performance
- 0.4 percentage points higher than the Bank of Korea’s forecast… Exports up 1.4%, manufacturing up 1.2%
Buoyed by strong semiconductor exports, the Korean economy posted higher-than-expected growth in the second quarter of this year. Real Gross Domestic Income (GDI), which reflects real purchasing power, also recorded its highest growth rate in over 38 years, driven by rising semiconductor prices.
The Bank of Korea announced on the 23rd that the real gross domestic product (GDP) growth rate for the second quarter of this year (quarter-on-quarter, preliminary estimate) stood at 0.6%.
This is 0.4 percentage points higher than the 0.2% second-quarter growth forecast the Bank of Korea had presented last May.
Quarterly growth rebounded from -0.1% in the fourth quarter of last year to 1.8% in the first quarter of this year and continued its upward trend in the second quarter. Year-over-year growth rates stood at 3.8% in the first quarter and 3.7% in the second quarter.
The Bank of Korea analyzed that while there were concerns about a slowdown in growth due to rising oil prices caused by the war in the Middle East during the second quarter, strong semiconductor exports offset these concerns.
By sector, private consumption rose 0.4% driven by increased spending on goods and services, while government consumption also increased by 0.2%, led by spending on health insurance benefits.
Construction investment fell by 0.2% due to a decline in civil engineering projects. In contrast, equipment investment rose by 0.2% driven by increased investment in machinery, such as semiconductor manufacturing equipment.
Investment in intellectual property products rose 3.3%, driven primarily by research and development and software. This marks the highest growth rate in 14 years and 3 months, since the 5.4% recorded in the first quarter of 2012.
Exports rose 1.4%, driven primarily by semiconductors and machinery and equipment, while imports also increased by 0.8%, led by automobiles and machinery and equipment.
In terms of contributions to second-quarter growth, domestic demand and net exports each contributed 0.3 percentage points. Private consumption contributed 0.2 percentage points, while government consumption, construction investment, and capital investment each contributed 0.0 percentage points, having a negligible impact on the growth rate.
By sector, manufacturing grew by 1.2%, driven primarily by computers, electronics, and optical equipment. The service sector also grew by 1.1%, driven by increases in wholesale and retail trade, accommodation and food services, finance and insurance, and information and communications.
In contrast, the electricity, gas, and water supply sector declined by 1.3%, driven primarily by decreases in water supply and raw material recycling, while the construction sector fell by 1.9% due to sluggish civil engineering activity. Agriculture, forestry, and fisheries also contracted by 7.1% due to declines in crop farming and fishing.
Real GDI for the second quarter rose 15.6% compared to the same period last year. This surpassed the first quarter’s 13.2% growth rate and marks the highest growth rate in 38 years and 3 months, since the 16.4% recorded in the first quarter of 1988.
Real GDI is an indicator of the real purchasing power of income derived from production activities. It grew at a faster rate than GDP as terms of trade improved due to rising prices of export goods such as semiconductors.
Ⅲ. BATTERY AND ELECTRIC VEHICLE INDUSTRY TREND
1. LG Energy Solution Blocks U.S. Sales of Chinese EVE Batteries… “Cylindrical Battery Patent Infringement”
LG Energy Solution has expanded its patent infringement litigation against a Chinese battery company from Europe to the United States.
Tulip Innovation, LG Energy Solution’s patent management firm, issued a press release on the 22nd stating, “LG Energy Solution has filed a petition for an import ban with the U.S. International Trade Commission (ITC) and a patent infringement lawsuit with the U.S. District Court for the Northern District of Texas against Chinese company EVE Energy and others.”
EVE Energy is a lithium-ion battery company founded in 2001. While it ranks among the top eight globally in the electric vehicle battery market, it is considered a top player in cylindrical batteries for small devices such as power tools.
With this lawsuit, LG Energy Solution has expanded the scope of its patent infringement litigation from pouch and prismatic batteries to include cylindrical batteries. Since becoming the first company in South Korea to successfully mass-produce cylindrical lithium-ion batteries in 1998, LG Energy Solution has secured numerous patents. A total of five patents is at issue in the lawsuit. These consist of four cylindrical patents, including “tabless” technology (a structure that eliminates electrode tabs), and one separator patent. The company maintains that these technologies are widely used in the U.S. power tool market and that its rights are being infringed.
LG Energy Solution has included not only EVE Energy but also power tool customers that import cells supplied by EVE Energy into the U.S. as defendants in the ITC lawsuit. If LG Energy Solution wins the case, an exclusion order will be issued to block the entry of the relevant products into the U.S. A cease-and-desist order prohibiting the sale of products currently distributed in the U.S. is also possible.
Previously, LG Energy Solution achieved success by filing a series of patent lawsuits against Chinese companies in Europe. Last year, it filed a lawsuit in Germany against Sunwoda alleging infringement of patents related to electrode assembly structure and separator coating (SRS). The court ordered a sales ban on the batteries in question, as well as the recall and disposal of inventory and the payment of damages. The two sides settled the dispute last month by signing a licensing agreement.
2. Samsung SDI’s ‘Countdown’ to All-Solid-State Battery Mass Production… EcoPro BM Also Actively Pursuing Material Development
- Samsung SDI develops ‘all-solid-state batteries’ with the goal of mass production next year
- Known as the “dream battery” due to its low fire risk and high energy density
- Materials supplier EcoPro BM also “expects mass production in 2027”
As Samsung SDI accelerates development with the goal of mass-producing all-solid-state batteries in the second half of next year, related materials companies are also gearing up for mass production, marking the full-scale launch of the “dream battery” ecosystem.
According to industry sources, Samsung SDI is developing sulfide-based all-solid-state batteries with the goal of mass production in the second half of next year.
All-solid-state batteries are next-generation batteries that use solid electrolytes instead of conventional liquid electrolytes. They are often referred to as the “dream battery” because they can reduce the risk of fire while increasing energy density. Depending on the type of solid electrolyte, they are classified into sulfide-based, oxide-based, and polymer-based categories.
Among these, the sulfide-based type on which Samsung SDI is focusing, offers the advantage of higher ionic conductivity than other materials, resulting in superior power output and charge/discharge performance.
To secure this technological competitiveness, Samsung SDI established the first all-solid-state battery pilot line in the Korean battery industry in 2023 and began producing prototypes.
Recently, as key material suppliers have begun full-scale preparations for mass production, the development of the all-solid-state battery ecosystem appears to be gaining momentum.
At an investor briefing held on the 16th, EcoPro BM unveiled a roadmap for its full lineup of materials for all-solid-state batteries and detailed its business plans for solid electrolytes.
An executive in charge of R&D at EcoPro BM stated, “We are currently reviewing pilot production of solid electrolytes with major clients and expect mass production to begin as early as 2027,” adding, “We have completed the design of the mass production line and are preparing to begin construction immediately in response to customer demand.”
EcoPro BM’s strategy is to secure proprietary process technology in the sulfide-based solid electrolyte sector and take the lead in the domestic market.
The industry is taking note of the fact that both cell manufacturers and materials companies are finalizing their mass production schedules with 2027 as the target year.
However, Samsung SDI remained tight-lipped, noting that while EcoPro BM is indeed a key partner, it is difficult to confirm details regarding specific supply chains or customers.
An industry official said, “All-solid-state batteries can only be commercialized once not only cell technology but also material technologies, such as solid electrolytes and cathode materials, have matured,” adding, “The fact that material companies are ramping up their investments and mass production preparations is a sign that the all-solid-state ecosystem is advancing to the next level.”
3. Hyundai Motor Group Launches ‘All Day Energy,’ a Global V2X Service Using EVs as ESS
Hyundai Motor Group is launching a global energy service that utilizes electric vehicle batteries not only as a power source for transportation but also for homes and the power grid.
Hyundai Motor Group announced on the 21st that it is launching “AllDayEnergy,” an integrated V2X service brand, and introducing “AllDayEnergy My Choice Savings,” a financial product developed in partnership with Hana Bank.
V2X is a technology that enables bidirectional connectivity between electric vehicle batteries and the external power grid. By charging vehicles during off-peak hours when electricity rates are low, users can use the stored energy at home when needed or feed it back into the grid to reduce charging costs and generate additional profit.
Hyundai Motor Group has been operating related services individually to suit regional conditions. In South Korea, it is conducting a V2G demonstration project on Jeju Island, where electricity is exchanged between electric vehicles and the power grid.
In the United States, the group has provided a V2H service that utilizes electric vehicle batteries as emergency power sources for homes when power supply is interrupted due to natural disasters such as wildfires. In the Netherlands, it has operated V1G smart charging, which adjusts charging speed and duration based on fluctuations in electricity rates, along with V2G services.
Hyundai Motor Group is consolidating these services under a single brand called AllDayEnergy. Starting with the United Kingdom, the group plans to roll out the service sequentially in major countries and provide it through the in-vehicle applications of each Hyundai Motor Group brand.
In South Korea, the group has also partnered with Hana Bank to launch a savings account product aimed at raising awareness of the service. The first 5,000 new subscribers to the “AllDayEnergy My Mind Savings” account will receive an interest rate of up to 4.5% per annum—comprising a base rate of 2.0%, a 2.0% preferential rate coupon, and a 0.5% preferential rate for automatic transfers.
The monthly deposit limit is 500,000 won, and the contract term is six months. Customers who open the savings account will receive a discount coupon for SOCAR electric vehicles, and those who maintain the account until the end of this year will receive a McDonald’s burger set coupon. First-time Hana Bank customers will also be entered into a drawing to win a BBQ chicken set coupon.
A Hyundai Motor Group official stated, “We will operate V2X services under the single brand name ‘All Day Energy’ to provide customers with a consistent energy service experience,” adding, “We will promote the concept and benefits of V2X through familiar financial products and work to popularize the technology.”
Ⅵ. ROBOT INDUSTRY TRENDS
1. Hyundai Motor Group Chairman Euisun Chung, “Creating an Ecosystem to Advance Domestic Robotics and AI Technology”
- Chairman Euisun Chung at the ‘San Francisco AI Summit’
- Collaboration with big tech on manufacturing, robotics, and data capabilities
- Creating a new innovation ecosystem for the era of physical AI
- Domestic projects, including the “saemangeum AI Valley,’ proceeding without delay
Hyundai Motor Group Chairman Euisun Chung attended the “San Francisco AI Summit” held in San Francisco, USA, and outlined the Group’s vision and strategy for Physical AI. Through strategic partnerships with major tech giants such as NVIDIA and Google, the Group aims to realize the future of Physical AI. Also, building on this foundation, the group will proceed without delay with large-scale investments, including the “Saemangeum AI Valley,” to drive a major leap forward for Korea’s industrial and technological ecosystem.
Chairman Chung stated on that day, “Hyundai Motor Group is moving beyond the boundaries of traditional automotive manufacturing and is now pursuing a transformation into a Physical AI solutions company, encompassing areas such as autonomous driving, robotics, and AI factories.”
Chairman Chung Euisun Unveils 'Physical AI Vision'... From Individual Devices to City-Level Integrated Intelligence
Regarding the Physical AI vision pursued by Hyundai Motor Group, Chairman Chung emphasized, “It begins with the intelligent transformation of individual devices such as automobiles and robots, progresses through the intelligent transformation of specific spaces like AI factories, and ultimately realizes integrated intelligence at the city level, where the entire urban infrastructure is organically connected and operated.”
Chairman Chung cited Hyundai Motor Group’s world-class manufacturing competitiveness, leading robotics capabilities, and a robust data flywheel structure as the reasons the group can realize this Physical AI Vision.
Chairman Chung stated, “Hyundai Motor Group has accumulated extensive experience in operating global manufacturing hubs, quality management capabilities, and supply chain operational know-how over a long period,” adding, “This serves as a crucial foundation for applying AI technology to actual products, processes, and services, and for rapidly validating and scaling it up.”
Regarding the Group’s robotics capabilities, he emphasized, “Boston Dynamics’ four-legged walking robot Spot, as well as Robot Stretch and MobED, are recognized as representative platforms,” adding, “The humanoid robot Atlas is gaining attention as a prime example of physical AI that assists and collaborates with humans in areas such as manufacturing, logistics, and mobility.”
He continued, “Hyundai Motor Group is building a ‘data flywheel’ that utilizes the vast amounts of data accumulated from manufacturing sites, vehicles, logistics, and robot demonstrations to advance AI, and then applies the improved algorithms back to the field to enhance performance,” adding, “This virtuous cycle is considered a key competitive advantage that will determine the performance of physical AI.”
Continued Investment to Expand the AI Ecosystem in Korea
Hyundai Motor Group is also proceeding without delay with large-scale investments aimed at propelling a major leap forward for the domestic industrial and technological ecosystem. Chairman Chung stated, “The results of our collaboration with Big Tech must serve as the foundation for the growth of the domestic Physical AI industry,” adding, “To this end, Hyundai Motor Group plans to create an open ecosystem to advance domestic robotics and AI technologies.”
Hyundai Motor Group is building the “Saemangeum AI Valley” in the Saemangeum region of North Jeolla Province, a project worth approximately 9 trillion won that includes an AI data center, a robotics manufacturing cluster, an electrolysis plant, and an AI hydrogen city. In particular, the robotics manufacturing cluster will serve as a “robot foundry,” handling everything from the production of its own robot products to contract manufacturing for small and medium-sized enterprises (SMEs) lacking manufacturing expertise. In the Yeongnam region, the group plans to foster a high-tech industrial hub through a total investment of 42 trillion won over 10 years, integrating an AI-based manufacturing hub, future aerospace, and sustainable energy infrastructure.
Through this initiative, the region aims to consolidate the core foundations of the Physical AI era that are data, energy, robot production, and demonstration capabilities, and contribute to boosting the national economy by strengthening South Korea’s industrial competitiveness, promoting balanced regional development, and creating jobs.
Strategic Collaboration with Major Big Tech Companies Such as NVIDIA and Google
Chairman Chung also emphasized strategic collaborations with major tech giants, stating, “By combining Hyundai Motor Group’s strengths, including manufacturing capabilities, robotics technology, and data, with the advantages of big tech companies, we can create a new innovation ecosystem for the Physical AI era.”
Hyundai Motor Group has signed a contract with NVIDIA to supply 50,000 Blackwell GPUs. Last year, the Group also established the “Robot Application Center.” It is also advancing autonomous driving technology by integrating NVIDIA’s autonomous driving solutions, including automotive semiconductor sensors and architectures, into its vehicles.
The Group also plans to continue its collaboration with Google’s Waymo. Since forming a strategic partnership in 2024, Hyundai Motor Group and Waymo have been pursuing cooperation across various fields, starting with the autonomous driving foundry business. Boston Dynamics has formed a strategic partnership with Google DeepMind and is leading the development of differentiated technologies to accelerate humanoid robot development.
Based on this, Hyundai Motor Group plans to establish a robot production system with an annual capacity of 30,000 units in the U.S. by 2028. The group intends to first deploy the next-generation electric Atlas prototype at production hubs such as Hyundai Motor Group MetaPlant America (HMGMA), and then gradually expand its adoption following validation.
2. Samsung and LG Establish ‘Robot Control Towers’ Directly Under CEOs… Full-Scale Commercialization Begins
- Establishment of a ‘Robotics Control Tower’ reporting directly to the CEO
- Manufacturing-based data and component capabilities are ‘strengths’
- Samsung: “manufacturing first”; LG: “comprehensive three-pronged approach”
Samsung Electronics and LG Electronics have recently embarked on targeted organizational restructuring for their robotics businesses.
Both companies are accelerating their business efforts by establishing control towers directly under their CEOs to spearhead their robotics operations.
Samsung Electronics and LG Electronics plan to advance their robots based on data accumulated from various manufacturing sites, while focusing on in-house production of robot components by leveraging their component manufacturing capabilities.
However, the two companies’ robot business roadmaps differ somewhat.
Samsung Electronics’ strategy is to validate robot technology in manufacturing environments before gradually expanding into the market.
LG Electronics intends to target the market through a three-pronged approach that includes industrial and commercial robots as well as home robots.
According to industry sources on the 25th, Samsung Electronics and LG Electronics recently carried out targeted organizational restructuring for their robotics businesses.
Samsung Electronics established the “RX (Robotics eXperience) Business Promotion Office,” which reports directly to CEO Roh Tae-moon, who also heads the Device Experience (DX) Division, while LG Electronics established the “Robotics Business Center,” which reports directly to CEO Lyu Jae-cheol.
This is seen as a strategy to accelerate the business by establishing a new control tower to spearhead the robotics business, which had previously been managed on a subsidiary or affiliate basis.
Manufacturing-Based Data and Component Capabilities Are a ‘Strength’
Industry observers predict that the data and component capabilities Samsung Electronics and LG Electronics have accumulated over many years in manufacturing will serve as strengths in advancing their robotics businesses.
Samsung Electronics expects that, given its affiliates—including Samsung Display, Samsung Electro-Mechanics, Samsung SDI, Samsung Heavy Industries, and Samsung E&A—operate a wide range of manufacturing sites spanning displays, electronic components, batteries, and shipbuilding and plant engineering , the company will be able to learn from a broad range of operational data from precision electronic assembly to heavy-load handling when deploying robots.
Accordingly, Samsung Electronics plans to establish a data factory at its Gumi facility to strengthen its use of data, which is a key competitive advantage for robots.
LG Electronics is also building a data factory for robot training at its research and development (R&D) campus in Yangjae-dong, Seocho-gu, Seoul.
South Korea is assessed to have a favorable foundation for internalizing manufacturing-specific physical AI technologies, as it possesses world-class hardware capabilities in semiconductors, batteries, and precision manufacturing.
Samsung Electronics and LG Electronics are also focusing on in-house production of robot components.
LG Electronics highlights its in-house production of actuators, a core component accounting for over 40% of robot manufacturing costs, as a key strength.
Based on motor technology accumulated over more than 60 years, the company plans to design and produce actuators in-house and supply them to global robot manufacturers.
Samsung Electronics is embarking on the development of robotic hands (dexterous hands), considered a key challenge in the commercialization of humanoid robots.
Dexterous hands represent an area with significant technical barriers and cost burdens, accounting for 17–31% of the total cost of humanoid robot components.
Professor Kim Uikyum of Ajou University, who recently joined Samsung Electronics, is expected to lead the development of intelligent manipulation technologies, including the dexterous hand.
Samsung: “Manufacturing First”… LG: “Comprehensive Three-Pronged Approach”
While Samsung Electronics and LG Electronics have both begun expanding their robotics businesses in earnest, their commercialization strategies differ somewhat.
Samsung Electronics’ strategy is to first validate robot technology in manufacturing environments and then gradually expand into the market.
The plan is to first deploy manufacturing-grade humanoids on production lines to accumulate data, and then evolve them into “highly intelligent, multipurpose humanoids.”
At CES 2026, held in the U.S. in January, Samsung Electronics CEO Roh Tae-moon stated, “Manufacturing is the field where robots can be most effective, accumulate data, and enhance their capabilities,” adding, “Since Samsung operates in various manufacturing sectors, including home appliances, TVs, mobile devices, networks, and medical devices, we will build our capabilities and then expand into B2B (business-to-business) and B2C (business-to-consumer) markets,” “Home robots are one of the B2C applications," he said.
LG Electronics plans to target the market with a three-pronged approach: industrial and commercial robots, which are being developed primarily by its subsidiaries, combined with home robots from the Robotics Business Center, which reports directly to the CEO.
LG Electronics is focusing on the pilot testing of “CLOiD,” the home robot it unveiled at CES 2026 this past January.
At a press briefing held on-site at the time, LG Electronics CEO Lyu Jae-cheol said, “By next year, CLOiD will leave the lab and be deployed in the field, so you’ll be able to see it for yourselves,” adding, “Including robot components, we plan to launch our home robot business in earnest starting next year.”
Meanwhile, industry analysts interpret this as a sign that the electronics sector, which had previously focused on technology development through its robotics subsidiaries, is now entering a phase of full-scale robot commercialization and mass production.
3. Hyundai Motor Group to Mass-Produce ‘Atlas’ in 2028… “Aiming to Become No.1 in Humanoid Robots by 2035”
- Hyundai and Kia to deploy robots on the ground… Proving maturity through world cup demonstration
- Acquired 100% stake in Boston Dynamics… Accelerating robotics business
- Investment industry forecasts “60% share of the humanoid market by 2035”
As global manufacturers have fully entered the race to mass-produce humanoid robots integrated with artificial intelligence (AI), Hyundai Motor Group is also making an all-out effort to take the lead in the robotics ecosystem, backed by large-scale investments.
According to business circles on the 25th, Hyundai Motor Group plans to complete a robotic production system with an annual capacity of 30,000 units by 2028. Of this total, approximately 25,000 units, which accounts for 83%, will be deployed first at Hyundai Motor and Kia’s vehicle assembly plants.
The robots scheduled for deployment are the “Atlas” models unveiled by Hyundai Motor through its affiliate, Boston Dynamics. Atlas is a humanoid robot that competes with Tesla’s Optimus and Figure AI.
Atlas is a mass-production model standing 189cm tall and weighing 90kg. It can perform human-like movements, making it suitable for deployment in industrial settings such as factories. Spot is a four-legged robot equipped with Google Gemini, designed for safety inspections and patrols in industrial settings.
Atlas and Spot successfully demonstrated high-difficulty maneuvers at the “2026 North and Central America World Cup” venue, proving their readiness for real-world deployment.
Fortune, a U.S. business magazine, described this demonstration, in which the robots overcame various variables and completed their mission on the grass of an outdoor stadium outside a controlled laboratory setting, as an unprecedented event in World Cup history.
Hyundai Motor Group recently acquired all remaining shares in Boston Dynamics, paving the way for a full-scale push toward the era of mass-produced humanoids.
By exercising the put option held by SoftBank to acquire the entire stake, external shareholder risks have been completely eliminated, enabling swift decision-making and large-scale investments, which is expected to further accelerate the pace of the robotics business.
Starting in 2028, Atlas will undergo a phased process beginning with safety verification at MetaPlant America (HMGMA) in the U.S., and from 2030 onward, its scope of application is expected to expand significantly to encompass the entire assembly process.
During this process, the Group will mobilize all its resources. Hyundai Mobis will produce 350,000 key components, such as actuators, annually at its U.S. facility, while Hyundai Glovis will be responsible for logistics automation and supply chain optimization.
External collaborations to accelerate the commercialization of robots are also gaining momentum.
A close AI partnership with Google DeepMind has been established, and efforts are underway to build digital twins and software-defined factories (SDFs) based on NVIDIA’s Omniverse and Cosmos platforms.
In particular, in line with the government’s policy of balanced national development, the “Saemangeum AI Valley” initiative is gaining momentum following a meeting between NVIDIA CEO Jensen Huang and Hyundai Motor Group Chairman Chung Euisun.
Hyundai Motor Group is launching a large-scale project involving a total investment of 9 trillion won on a 1,124,000-square-meter (approximately 340,000 pyeong) site. The group plans to invest in an AI data center (5.8 trillion won) and a robotics manufacturing and parts cluster (400 billion won).
In particular, the AI data center, which will have the computational capacity of 50,000 GPUs, will serve as the central brain for controlling not only software-defined vehicles (SDVs) and smart factories but also robots, and the possibility of future collaboration with NVIDIA has been raised.
Competition in the global market is also intensifying. Global investment bank Goldman Sachs forecasts that the global humanoid market will reach $38 billion (approximately 56 trillion won) by 2035.
In South Korea, Samsung Electronics has entered the fray by establishing the “RX (Robotics eXperience) Business Promotion Office,” a unit reporting directly to the CEO and led by Roh Tae-moon, President and CEO of the DX Division, to cultivate robotics as a core pillar of future growth.
In particular, the battle for talent is heating up, as the company has recruited Vice President Lee Dongkun, formerly of Hyundai Motor Group, as head of the Robotics Strategy Team and is actively bringing in a large number of talent from academia.
Furthermore, with Tesla’s Optimus and China’s Unitree accelerating their race to mass production, and LG Group strengthening its robotics business through collaboration with NVIDIA, the battle for leadership on the global stage is heating up even more.
Ⅴ. BIO INDUSTRY TRENDS
1. Samsung Biologics, First-Ever First-Half Operating Profit Exceeds KRW 1 Trillion
- Q2 revenue of 1.3 trillion won, operating profit of 586.4 billion won
- First-half operating profit jumps 29% year-over-year
- Celltrion closes in rapidly with 77% year-over-year growth
Samsung Biologics surpassed 1 trillion won in first-half operating profit for the first time since its founding, driven by full-capacity operations at Plants 1 through 4 and favorable exchange rates. Celltrion also posted its best-ever second-quarter results, demonstrating that K-Bio is strengthening its presence in the global market.
Samsung Biologics announced on the 23rd that it recorded second-quarter revenue of 1.3209 trillion won and operating profit of 586.4 billion won. Compared to the same period last year, revenue increased by 306.7 billion won (30%), and operating profit rose by 109.2 billion won (23%). As a result, operating profit for the first half of this year reached 1.1672 trillion won, a 29% increase from the previous year (907.4 billion won). The company explained that the operating profit margin remained in the 40% range despite the prior recognition of related costs ahead of the full-scale revenue recognition from Plant 5 and the Rockville production facility in the U.S. Samsung Biologics expects to achieve the upper end of its annual revenue growth guidance for this year.
However, losses resulting from the labor union strike are likely to be partially reflected in the third quarter. Samsung Biologics estimates that it incurred losses of over 150 billion won due to the union’s partial and full-scale strikes that took place in April and May. Despite the impact of the strike, Samsung Biologics continues to secure global orders across all areas of contract manufacturing (CMO) and contract development (CDO). Since its founding, the company has secured a cumulative total of 115 CMO contracts and 176 CDO contracts, with the cumulative order value reaching $21.7 billion.
In terms of global operations, the company plans to open a European sales office in the Netherlands within the third quarter to accelerate its expansion into the global market. In terms of its portfolio, the company is continuously expanding its business scope, including entering the “anti-obesity drug” business following its decision to acquire Polypeptide Group, a global peptide contract development and manufacturing organization (CDMO).
Celltrion is also hot on the heels of Samsung Biologics. Earlier, Celltrion announced that its second-quarter operating profit reached 430 billion won, a 77.3% increase year-over-year. Revenue rose 35.2% year-over-year to 1.3 trillion won. This marks the company’s best-ever second-quarter performance. The operating profit margin improved from 25% last year to approximately 33%.
2. K-Bio: Accelerating Development of Next-Generation Anticancer Drugs
- Global big pharma competes to secure next-generation technologies, such as dual payloads
- Domestic companies including Samsung Bioepis, LigaChem, and ABL Bio are also accelerating development.
As global pharmaceutical companies accelerate their efforts to secure antibody-drug conjugate (ADC) technology, which is considered a next-generation anticancer treatment, the development competition among domestic pharmaceutical and biotech firms is intensifying.
ADCs are a next-generation anticancer technology that combines an antibody, which targets cancer cells, with a potent anticancer drug. Because the antibody precisely locates cancer cells to deliver the drug, they are also referred to as “guided-missile anticancer drugs.”
While conventional chemotherapy attacks normal cells as well, leading to numerous side effects such as hair loss, vomiting, and a decrease in white blood cells, ADCs selectively target only cancer cells, resulting in higher therapeutic efficacy and reduced damage to normal cells.
Leading ADC therapies include “Enhertu,” jointly developed by Daiichi Sankyo and AstraZeneca; “Padscev” from Astellas and Pfizer; and “Trodelvy” from Gilead Sciences. These products have all generated sales in the trillions of won in the global market, proving the commercial viability of ADCs.
As the global market grows rapidly, companies are shifting their focus beyond securing existing ADC technologies to preemptively securing next-generation platform technologies.
In April, Eli Lilly acquired CrossBridge Bio, a developer of dual-payload ADCs, for up to $300 million (approximately 410 billion won). Dual-payload ADCs are designed to combine two different types of anticancer drugs onto a single antibody to enhance therapeutic efficacy and reduce resistance.
Pfizer also recently signed a joint ADC development agreement with Innovent Biologics worth up to $1.05 billion (approximately 1.4 trillion won) and unveiled its plans to develop “Noble Payload ADCs.” This, too, falls under next-generation ADC technology that aims to enhance therapeutic efficacy and overcome resistance by incorporating new anticancer drugs that differ from existing ones.
Domestic companies are also joining the development race. Samsung Bioepis recently signed an agreement with Intocell, a company specializing in ADCs, for the follow-up R&D and commercialization of the new ADC drug candidate “SBE303.” The company plans to accelerate the development of a Nectin-4-targeted solid tumor treatment, which is currently undergoing a global Phase 1 clinical trial.
LigaChem Bio is strengthening its global competitiveness based on its proprietary linker technology. The company plans to secure new payload technology this year and present research results on its claudin-18.2 (CLDN18.2)-targeted ADC candidate at the European Society for Medical Oncology (ESMO 2026), the world’s largest cancer conference, this coming October.
ABL Bio is focusing on the development of bispecific antibody-based ADCs to target the next-generation market. Recently, the company unveiled plans to develop “dual-payload ADCs,” which combine two types of anticancer drugs onto a single antibody, and “Noble Payload ADCs,” which utilize novel anticancer drugs different from existing ones. Its key pipeline candidates, “ABL206” and “ABL209,” are currently undergoing Phase 1 clinical trials in the U.S.
In addition, Dong-A ST, Chong Kun Dang, Celltrion, and Hanmi Pharmaceutical are also participating in the development of new ADC drugs. A bioindustry official stated, “As the ADC market grows rapidly, competition among companies is expanding beyond simply securing candidate compounds to include competition over platform technologies such as linkers, payloads, and bispecific antibodies.”
3. Samsung Biologics, ‘Largest K-Bio’ M&A… “Entry into Obesity Drugs”
- Largest M&A deal in Korea’s biotech industry finalized
- Peptides gain attention as treatments for obesity and diabetes
- Major shareholder’s stake to be acquired via tender offer by December
Samsung Biologics has embarked on the largest M&A (mergers and acquisitions) deal in the domestic biotech industry. By acquiring a global peptide CDMO (contract development and manufacturing organization), the company is making a full-scale entry into the obesity and diabetes drug market.
Samsung Biologics announced on the 20th that it has signed an acquisition agreement with PolyPeptide Group, a global peptide CDMO company.
The acquisition amount is 1.46296 billion Swiss francs (approximately 2.7062 trillion won), making it the largest M&A deal in the history of South Korea’s pharmaceutical and biotech industry.
Samsung Biologics plans to finalize the acquisition by the end of December this year, with the goal of securing 100% ownership of the Polypeptide Group through the purchase of shares from major shareholders and a tender offer.
Peptides are substances consisting of short chains of 2 to 50 amino acids, the basic building blocks of proteins, and act as messengers that transmit hormones or signals between cells within the body. Peptide drugs are developed by synthetically producing these peptides for use as treatments for diseases.
A prime example is the GLP-1 (glucagon-like peptide-1) class of drugs for treating obesity and diabetes, a market that has been expanding recently. These drugs were developed to mimic a hormone in the body that stimulates insulin secretion and induces a feeling of satiety.
Peptide drugs involve complex synthesis processes and require highly precise process control and strict GMP quality management. In particular, during the commercialization phase, securing large-scale production capacity and a stable supply chain is essential, leading to a growing trend toward outsourcing production to specialized CDMOs. In fact, due to the high technical barriers in the manufacturing process, approximately 62–64% of peptide developers utilize specialized CDMOs.
The Polypeptide Group is a specialized peptide CDMO company that was spun off in 1996 from the peptide production division of the global pharmaceutical company Ferring and is headquartered in Baar, Switzerland.
With a track record of over 1,000 peptide therapeutic development and production projects, the company is recognized as a global leader with industry-leading capabilities in developing production processes for novel peptide drug candidates.
The company also possesses manufacturing technology that can dramatically reduce the use of organic solvents, which is the liquid raw materials required for peptide production. This technology not only reduces raw material costs and improves production efficiency but also minimizes waste generation, enabling a more environmentally friendly manufacturing process.
Six Peptide Drug Production Hubs… 1,500 Specialized Personnel
Through this agreement, Samsung Biologics has simultaneously secured the Polypeptide Group’s peptide drug production facilities, technology, and skilled workforce.
The Polypeptide Group currently operates six production hubs and research and development (R&D) centers across five countries and employs a workforce of approximately 1,500 specialists.
The six production sites are located in Malmö, Sweden; Braine, Belgium; Torrance and San Diego, USA; Strasbourg, France; and Ambernath, India.
Samsung Biologics expects that by linking these facilities with its existing production facility in Rockville, U.S., it will enhance accessibility for multinational pharmaceutical companies and be able to respond flexibly to changes in regional supply chains.
Furthermore, by taking over the CDMO contracts currently being executed by the Polypeptide Group, the company will be able to maintain a stable order volume immediately following the acquisition.
The company plans to maximize business synergies by combining its accumulated expertise in the design and operation of large-scale production facilities with the Polypeptide Group’s peptide development and production technologies. It also intends to review expanding production capacity in response to future growth in the peptide market to meet customer demand in a timely manner.
Given that many global pharmaceutical companies are developing both antibody drugs and peptide therapeutics, the company anticipates that opportunities for cross-order acquisition will also expand.
Global Obesity Treatment Market to Grow to 200 Trillion Won by 2035
According to analyses by global investment banks (IBs) and others, the global obesity treatment market is expected to reach up to $150 billion (approximately 200 trillion won) by 2035, driven by surging international demand and the expansion of treatment indications.
As this represents the most notable market growth potential among treatments for a single disease, demand for peptide-based therapeutics, the key raw materials, is also expected to rise accordingly.
The global peptide CDMO market is also projected to grow at a compound annual growth rate of 20.3%, expanding from $5.52 billion in 2026 to reach $29.14 billion (approximately 40 trillion won) by 2035.
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Korean Industrial Insight No.29 of AI, Semiconductors, Batteries, Electric vehicles, Robot, and Bio in chinese
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