[Interview] "AI is Essential in Manufacturing... Urgent Need for On-Site Application Technology"

AI-Based Semiconductor Manufacturing Process Diagnosis Company 'AIBiz'
Securing Yield Improvement Technologies for Secondary Batteries, Materials/Components/Equipment, and Bio Fields

A Korean startup that enhances manufacturing efficiency through artificial intelligence (AI) technology is gaining attention in Silicon Valley. The company, AIBiz, supplies AI-based process diagnosis solutions to semiconductor foundries.

On the 20th (local time), Han Kyung-seok, head of AIBiz's U.S. branch, met with Asia Economy at the KOTRA Silicon Valley Trade Center office in San Jose, USA, and said, "The U.S. is the center of the semiconductor and battery industries," adding, "If you have the technology, it is an 'investment ground' where you can receive abundant investments."

He stated, "We can directly apply our technology locally and collaborate with companies," and added, "Voluntary communities of local experts and company officials are held daily."

On the 20th (local time), Han Kyung-seok, head of AIBiz's US branch, is being interviewed by Asia Economy at the KOTRA trade office in San Jose, USA. Photo by Park Joon-yi

AIBiz is currently contributing to yield improvement for major Korean semiconductor companies. Its core technology is the AI-based manufacturing process diagnosis solution called ‘DutchBoy.’ It collects years of defect rate data, analyzes patterns, and precisely identifies defect rates based on this analysis.

In addition to semiconductors, the company performs manufacturing process anomaly detection and process optimization with large corporations in various fields such as secondary batteries, materials/components/equipment, bio, and information technology (IT). It showcased its technology at the world’s largest IT and consumer electronics exhibition, CES 2025, in January.

In 2023, to collaborate with U.S. companies, AIBiz established a San Jose branch within the KOTRA Silicon Valley Trade Center. San Jose is a region densely populated with semiconductor and IT companies, providing an optimal environment where information and technology flow rapidly and the technology demands of partners can be quickly addressed.

Especially with the recent AI boom, Korean startups are also attracting attention from major investment firms. He said, "Large corporations tend to move slowly with changes, but startups have a dynamic atmosphere," adding, "Venture capitalists (VCs) in Silicon Valley also seem ready to invest." This has created an atmosphere where various startups seeking investment are gathering in San Jose.

Currently, about 50 domestic companies are housed in the Silicon Valley Trade Center. Their main fields include semiconductors, AI, and autonomous driving, and the number of companies applying AI technologies is increasing here as well. A KOTRA Silicon Valley Trade Center official said, "More and more companies are integrating AI-applied technologies," adding, "It is easier to receive investment and helps promote their products."

Although the AI industry is rapidly developing, AI advancement in the manufacturing industry is still at an early stage. The company seized the opportunity in this niche and quickly entered the market.

Han, the branch head, emphasized, "Industrial AI faces high barriers to adoption due to massive data processing and storage issues, complex correlations among numerous factors, and anxiety caused by unclear demand. Nevertheless, AI is becoming essential in manufacturing, and the development of industry-customized AI technologies applicable to actual sites is urgently needed."

He predicted that automation and intelligence of industrial processes to meet market demand will become more active. He explained that AI-based robots and predictive analytics solutions will become widespread, significantly reducing companies’ operating costs and time.

AIBiz was not able to adapt locally from the start. Although it was able to establish a corporation with the help of the KOTRA IT Support Center, it struggled initially due to cultural barriers and the challenge of building local networks.

He said, "Business meetings and networking are conducted differently than in Korea, so it was not easy to quickly build trust with local partners," adding, "To solve this, I, who am familiar with local circumstances, was assigned as the branch head." He continued, "I have consistently participated in events hosted by local startup communities and investors to promote the company and find potential partners and customers."

On the 20th (local time), Han Kyung-seok, head of AIBiz's US branch, is giving an interview to Asia Economy at the KOTRA trade office in San Jose, USA. Photo by Park Joon-yi

The difficulty of obtaining permanent residency in the U.S. is also one of the challenges for local expansion. Especially recently, the Trump administration has been attempting to refuse entry or deport not only illegal immigrants but also legally residing foreigners for various reasons.

He expressed regret, saying, "If only permanent residency could be obtained, many would probably move from Korea to San Jose." An employee at AIBiz’s San Jose branch is currently waiting for the next lottery after failing to obtain a work visa recently.

Han, the branch head, shared his impression that the culture between large corporations and small businesses (startups) in the U.S. is quite different from that in Korea. In Korea, large and small companies work separately, and large corporations tend to provide minimal financial support to startups. In contrast, in the U.S., there is a prevailing ‘win-win’ atmosphere where small businesses must succeed for large corporations to succeed. However, the process of assessing the technological level of partner companies before collaboration is very strict, and once the technology level is recognized, partners are treated as equals.

Especially, Korean companies with branches in the U.S. have recently gained potential geographic advantages as the second Trump administration promotes America First policies and ‘onshoring’ (expansion of domestic production facilities). He said, "We are actually feeling the geographic advantage, and it will grow further," emphasizing, "In the past, only large Korean corporations had to worry about these issues, but now even small businesses must operate considering the U.S. political situation." He suggested that companies should consider active strategies such as establishing U.S. corporations and cooperating locally to build production facilities.

Going forward, AIBiz’s goal is to increase contact points with local companies by forming a dedicated sales and marketing team at its U.S. branch. In the long term, the company also aims to go public on the domestic stock market by 2027 based on sales in the U.S. market. Han said, "We plan to secure a stable sales pipeline in the U.S. market to maximize corporate value and investment attractiveness when listing domestically."

List of companies located in the KOTRA Silicon Valley Trade Center in San Jose, USA, Photo by Junyi Park