[Click eStock] "LG CNS to Benefit from Expansion of Physical AI Investments"

Research Alarm stated on November 17 that the smart engineering division of LG CNS is expected to benefit from the expansion of investments in physical artificial intelligence (AI).

Recently, Nvidia announced its 'K-AI Infrastructure' investment plan to supply a total of 260,000 graphics processing units (GPUs) domestically in cooperation with the Korean government, Samsung Electronics, SK, Hyundai Motor, and Naver. GPUs are primarily used for building national AI computing centers, AI factories in manufacturing, automotive, and robotics sectors, as well as physical AI infrastructure for digital twins, autonomous driving, and robotics.

Choi Sunghwan, a researcher at Research Alarm, explained, "Investments related to AI factories and physical AI by domestic manufacturing, mobility, and robotics companies are expected to increase in earnest."

He added, "The smart engineering division of LG CNS serves as an on-site implementation partner that applies physical AI to smart factories, smart logistics, energy management, and process optimization, integrating robots, equipment, sensors, and control systems."

Furthermore, he emphasized, "Physical AI must be combined with high-performance GPU infrastructure, digital twins, robots, automated guided vehicles (AGVs), and industrial sensor networks to lead to tangible productivity improvements," adding, "LG CNS's smart engineering possesses engineering capabilities that connect IT (information technology) and OT (operational technology)."

He analyzed, "LG CNS is expanding robot and equipment automation projects for manufacturing and logistics clients through references that combine agentic AI and physical AI."

Choi also explained, "Over the next two to three years, the growth trajectory of the smart engineering division will show a very high correlation with the physical AI investment cycle," and noted, "The advancement of smart factories at overseas plants, centered on LG Energy Solution and LG Display, continues."