[Robot Component War]② Beyond Intelligence, It's a Battle of Costs... In the Era of Physical AI, the Supply Chain Is the Key to Survival

The Race for 'Humanoid Popularization' Begins
Major Corporations Enter the Actuator Industry
Technological Localization Needed to Lower Costs

Editor's NoteAs artificial intelligence (AI) expands into the real world, the center of manufacturing sites is rapidly shifting from humans to robots. However, South Korea, which has long maintained a traditional manufacturing-centered structure, has yet to fully establish a supply chain for robot components to support the transition to automated systems. With Japan leading in precision and China in pricing, the status of South Korea as a 'manufacturing powerhouse' is now being put to the test. The Asia Business Daily examines the current state of the domestic robot component industry in the era of physical AI and explores survival strategies.

This year, the key word commonly identified by the heads of major domestic manufacturing and component companies participating in the world's largest electronics and IT exhibition, 'CES 2026,' was 'actuator.' Both inside and outside the industry, there is a consensus that this year marks the beginning of the popularization of the humanoid industry, and visible moves are being made to secure the core components that will determine the price competitiveness of robots.

In particular, the global robot industry is shifting from the question of 'who can make robots' to 'who can industrialize them faster.' Ultimately, competition in the era of physical AI is converging on the issue of 'who can manufacture more cheaply and reliably.' To counter China's volume-driven strategy, the key to survival is emerging as the establishment of a massive supply chain capable of supporting mass production, going beyond the technological competitiveness of individual companies.

The Dawn of the 'Actuator Era'

According to industry sources on February 2, domestic set and component companies are expected to fully enter the robot component industry starting this year. In particular, set manufacturers are making notable moves to internalize drive components such as actuators in order to lower robot unit costs. An actuator refers to an integrated joint module that combines a motor, reducer, and controller, and is one of the key components required for robots.

The domestic robot industry, which has been dominated by startups and small and medium-sized enterprises, is now expanding with a stronger presence from large corporations this year. LG Electronics has announced the launch of its home robot 'CLOiD' and introduced its own actuator brand, 'LG Actuator Axiom,' which will be applied to this product. Starting next year, the company plans to not only use this actuator in CLOiD but also sell it externally.

Component subsidiaries of large corporations have also declared their entry into the market one after another. In the automotive electronics sector, key components previously used in the automotive industry are being applied to the robot industry, making it possible to sufficiently expand the supply chain. Hyundai Mobis is currently developing and supplying actuators for Boston Dynamics' humanoid robot 'Atlas,' and has set a goal to enhance their completeness and enter mass production starting this year. HL Mando, a major automotive parts supplier for Hyundai Motor, also identified the actuator business as a future growth engine and officially launched it last year.

Samsung Electro-Mechanics and LG Innotek have also formalized their plans to enter the robot component market this year. Based on their existing capabilities in automotive electronics and electronic components, they aim to gradually expand their application areas to actuators, camera modules, sensors, and glass substrates.

The Core of Price Competitiveness: Technological Localization and Internalization

Industry experts point out that simply advocating for the use of domestic components is not enough to secure price competitiveness. Unlike China, where the government provides comprehensive support to companies, academia, and the component industry, focusing solely on localization could actually stagnate technological competitiveness or increase the burden on manufacturers. A representative of Doosan Robotics explained, "Expanding localization is important, but developing core components requires significant investment," adding, "We decide whether to localize or import components after considering various factors such as quality, technical requirements, and business strategy."

On the other hand, some analysts argue that using domestic components could be more efficient in the long term. A representative from component company B said, "In the context of trade disputes and global supply chain restructuring, domestic components can serve as a stable procurement strategy." In fact, some manufacturers have complained that when they request deliveries from overseas, it can take several months, or they may not be able to obtain the desired components at all.

On the ground, there is a growing consensus that expanding the domestic component supply chain will have a positive impact on reducing the unit cost of finished robots. If domestic manufacturers use domestic components, an ecosystem for robot components can be formed, and as supply volume increases, this is expected to create a 'virtuous cycle' that will contribute to lower component prices in the medium to long term.

Domestic manufacturers are investing in technological internalization to enhance price competitiveness. A representative from component company A said, "Fundamental technology is essential to secure both price competitiveness and technological prowess," adding, "Without fundamental technology, not only does it take additional time and cost to develop products, but sustainability is also compromised, which is fatal." Component company C also explained, "If you buy ready-made components or acquire certain technologies, you have to pay royalties, but if you have your own technology, you can manufacture products and components yourself, minimizing costs."

Lee Isu, Principal Researcher at the Humanoid Research Group of the Korea Institute of Science and Technology (KIST), stated, "If we rely solely on overseas components, we cannot achieve independent production, which increases dependence in the long term and undermines profitability," adding, "For core components, localization is necessary."