Neuro-Trend
May Trends – AI Becomes the New Survival Strategy for Manufacturing (Manufacturing AI / China Semiconductor / Smart Factory)
Taiwan Advances as the Heart of AI
NVIDIA CEO Jensen Huang announced at COMPUTEX 2025 that NVIDIA will collaborate with the Taiwanese government, TSMC, and Foxconn to build Taiwan’s first AI supercomputer. This is interpreted as a strategy to transform Taiwan beyond a simple AI manufacturing base into a full-fledged user of AI technology and a hub of the global ecosystem.
Specifically, NVIDIA will provide GPUs, architecture, and software, while TSMC and Foxconn will be responsible for chip production and hardware assembly. Meanwhile, the Taiwanese government plans to open supercomputing resources to research institutions to support technology development. Through this collaboration, Taiwan’s AI capabilities are expected to be further strengthened.
New Government Launched… Will It Become a Game Changer for Korea’s AI Industry?
The newly launched government is pushing forward AI industry development policies centered on a KRW 100 trillion investment, expansion of AI infrastructure, and regulatory easing.
The goal is to promote the widespread adoption of AI by securing high-performance GPUs, developing AI-dedicated chips, building nationwide AI data centers, and providing a Korean version of ChatGPT for free.
In addition, measures such as AI talent development, restructuring of the education system, and the establishment of a national-level organization to oversee AI strategy will be implemented.
Through these efforts, the adoption of AI technology, collaboration among companies, and mergers and acquisitions are expected to become more active across various industries, including healthcare, finance, education, and software. Ultimately, AI is expected to become a key driver of structural innovation and new growth across Korea’s industries.
Industrial Electricity Usage Declines for Two Consecutive Years Amid Manufacturing Slowdown
Due to the contraction of domestic manufacturing, industrial electricity sales have decreased for two consecutive years, and there is a possibility of a third consecutive year of decline.
As the construction market slows and domestic demand weakens, more companies are halting factory operations, while rising industrial electricity rates are adding further burden.
In particular, electricity usage in manufacturing has significantly decreased in major industries such as automotive and machinery, which can be seen as an indicator of the severity of the economic slowdown.
China’s AI Counterattack: Will It Succeed in Developing Its Own Chips?
As the United States strengthens semiconductor export restrictions, Chinese AI companies have begun full-scale development of domestic semiconductors and testing of alternative chips.
With NVIDIA chip inventories rapidly depleting and restrictions extending to the use of Huawei chips, independent AI chip innovation within China is being accelerated.
NVIDIA is preparing lower-spec chips for the Chinese market, but performance limitations are expected to inevitably delay AI development schedules.
Accordingly, Chinese companies are exploring a “hybrid” strategy that combines existing NVIDIA chips with domestically developed chips. In this process, the development of domestic AI chips and a software ecosystem is expected to become a key foundation for China’s AI industry.
For Both Large Enterprises and SMEs, AI Is No Longer Optional but Essential
A survey shows that 4 out of 10 domestic companies are already adopting and utilizing AI in their businesses.
AI is used by 65.1% of large enterprises and 35.6% of SMEs, mainly in areas such as research and development (R&D), process optimization, and customer care.
Companies that have adopted AI have experienced improvements in productivity, reductions in operating costs, and enhanced decision-making accuracy, while also citing a shortage of skilled personnel and the burden of initial investment costs as challenges.
Accordingly, comprehensive government-level support is required. AI is expected to become not just a technology for leading companies, but a fundamental capability that companies of all sizes must adopt for survival.
HD Hyundai Targets Both “Speed and Quality” with Smart Factory
HD Hyundai Construction Equipment has begun a full-scale digital transformation by converting its Ulsan plant into a smart factory.
The key initiative involves investing approximately KRW 200 billion to integrate the plant and introduce equipment automation and AI-based quality inspection systems.
Through this, annual production capacity is expected to increase by 56%, and production lead time is expected to be reduced by 35%.
In particular, AI and robotics technologies are expected to significantly reduce defect rates and improve inspection efficiency.
This transformation is expected to enhance HD Hyundai’s manufacturing competitiveness and strengthen its position in the global market.
