The "manufacturing paradigm" that has supported Korea's economy is shaking to its core. Mired in low growth, Korea's manufacturing sector faces a compound crisis from China's fierce pursuit and a global supply chain reshuffle. In particular, small and midsize manufacturing sites—the capillaries of industry and the roots of supply chains—are groaning under a "triple whammy" of labor shortages, rising costs, and stagnant productivity, and are being pushed to the brink. Now the only breakthrough for survival is "AX (AI transformation)." Artificial intelligence (AI) is more than a simple technology adoption; it is the last bastion that will breathe new life into aging factories and restart the growth engine of the Korean economy. ChosunBiz takes a close look at why small and midsize manufacturers on the cliff's edge must bet their survival on AX, and the "new growth map" that Korea's manufacturing industry must follow. [Editor's note]
"Click. Drrrk, drrrk."
On the 14th, at the Shinsung ENG smart factory in Yongin, Gyeonggi Province. Two collaborative robots, shaped like human arms, stopped in front of a hefty machine measuring 1.2 meters by 1.2 meters. The "eyes (vision sensors)" attached to the robots instantly located the screw holes and tightened the bolts precisely in three seconds. This is the process of making "fan filter units (FFU, industrial air purifiers)," essential equipment for semiconductor plants.
A robot now performs the 40 bolt-tightening steps—work that once required two skilled workers to spend an entire day—without a hitch. Founded in 1977 and a "48-year manufacturing elder" that led the localization of semiconductor cleanrooms, Shinsung ENG has donned AI and robots to be reborn as a "younger factory."
A cleanroom is a high-purity production space that precisely controls ultrafine dust, temperature, and humidity. Shinsung ENG posted 582.3 billion won in revenue in 2024, with cleanroom operations accounting for more than 90% of total sales. Operating profit that year was 5 billion won.
◇ Defect rate from "500" to "50"… the manufacturing formula AI changed
Shinsung ENG's Yongin plant is a "rear base" for Korea's semiconductor and display industries. Core equipment for cleanrooms at global corporations such as Samsung Electronics and SK hynix rolls out of this site at a pace of 100,000 units a year.
The plant's transformation is a model answer for how to break through the "triple burden (labor shortages, high costs, low efficiency)" facing Korean manufacturing through AX (AI transformation). Since launching digital transformation (DX) in 2016, productivity has improved dramatically.
The results are proven in numbers. By overhauling processes that relied on human intuition and manual work into data-driven operations, output per hour jumped 29% compared with before adoption. Even more striking is quality. Process defects, which stood at 502.7 per million (502.7 ppm), were cut to 52 (52 ppm), a tenth of the previous level. The defect rate dropped 89.7%. Lead times also improved by 19%.
Cho Hyun-seong, head of manufacturing at Shinsung ENG, said, "For cleanroom equipment, the lifeblood is supplying 'on time, perfectly' in line with clients' urgent expansion schedules," adding, "We overcame the limits of a make-to-order industry—where it's impossible to sell from stock—through a data-based real-time production system." The automation rate of the FFU production line now reaches 80%.
◇ AI controls power and safety too… aiming for a 'dark factory'
AI at this plant does more than tighten screws. It serves as the "brain" that reads and controls the factory's overall energy flow.
When solar panels installed on the roof and idle land generate electricity, AI analyzes the plant's power usage in 15-minute intervals. Based on the production schedule, it calculates when more or less electricity is needed and decides on its own whether to use self-generated solar power or draw commercial power from outside. Thanks to this "intelligent energy management," the plant cut the energy expense of operations by 19%.
Safety management has also been advanced with AI. A control system using Digital Twin (virtual model) technology tracks workers' movements in real time. AI analyzes workers' joint movements through CCTV and sounds an alarm immediately when abnormal behavior is detected or if someone approaches a danger zone.
Shinsung ENG's ultimate goal is a factory with the lights off—a "dark factory." This is a stage where the plant diagnoses its own condition and makes optimal decisions without human intervention.
Cho said, "AI is not a simple automation tool but the nervous system of manufacturing that organically connects production, energy, and safety," emphasizing, "Transplanting an AI heart into aging manufacturing sites to secure global competitiveness is the path for Korea's manufacturing to survive."