[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 physical world, the center of manufacturing sites is rapidly shifting from humans to robots. However, Korea, which has remained focused on a traditional manufacturing-centered structure, has yet to fully establish a robot parts supply chain to support the transition to an automated system. In a structure where precision lags behind Japan and price competitiveness trails China, the status of Korea as a "manufacturing powerhouse" is being put to the test. The Asia Business Daily, in line with the era of physical AI, examines the current state of the domestic robot parts industry and explores survival strategies.

At CES 2026, the world's largest electronics and IT exhibition held this year, the keyword most frequently cited by the heads of major Korean manufacturing and parts companies was "actuator." As many inside and outside the industry view this year as the beginning of the popularization of the humanoid industry, moves to secure leadership in core components that will determine the price competitiveness of robots are becoming more visible.

In particular, the global robot industry is shifting from the question of "who can build robots" to "who can industrialize them faster." Analysts say that, in the end, competition in the era of physical artificial intelligence (AI) is converging on the question of "who can produce more cheaply and more reliably." To counter China's volume-driven strategy, building a large-scale supply chain capable of supporting mass production, beyond the technological competitiveness of individual companies, is emerging as the key to survival.

The dawn of the 'actuator boom'

According to industry sources on the 2nd, Korean set manufacturers and parts companies are expected to fully enter the robot parts industry starting this year. In particular, set manufacturers are increasingly seeking to internalize drive components such as actuators in order to lower per-unit robot prices. An actuator is an integrated joint module that combines a motor, reducer, and controller, and is one of the core components required in robots.

The domestic robot industry, which had been led mainly by startups and small and medium-sized enterprises, is now set to expand around large corporations this year. LG Electronics has announced the launch this year of its home robot "CLOiD" and unveiled its in-house actuator brand "LG Actuator Axiom" to be applied to the robot. Starting next year, the company plans to both use it in CLOiD and sell it to external customers.

Parts subsidiaries of large conglomerates are also announcing their entry one after another. In the automotive electronics sector, it is fully feasible to expand the supply chain by applying core components previously used in the automotive industry to the robot industry. Hyundai Mobis is developing and supplying actuators for Boston Dynamics' humanoid robot "Atlas," and has set a goal of enhancing their completeness and entering full-scale mass production starting this year. HL Mando, an auto parts company that is a key supplier to Hyundai Motor, also designated the actuator business as a future growth engine last year and has begun full-scale operations.

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

Core to price competitiveness: technology localization and internalization

Industry insiders point out that it is difficult to secure price competitiveness with the slogan "let's just use domestic parts" alone. In an environment unlike China, where the government provides broad-based support to companies, academia, and the parts industry, becoming fixated on localization itself may actually stall technological competitiveness or simply increase the burden on manufacturers. A Doosan Robotics official said, "Expanding localization is important, but developing core components requires substantial investment," adding, "We decide whether to localize or import parts after considering various factors such as quality, technical requirements, and business strategy."

On the other hand, some analysis suggests that in the long term, using domestic parts may actually be more efficient. An official at parts company B said, "In the context of trade disputes and a reorganization of global supply chains, domestic parts can serve as a stable procurement strategy." In fact, several manufacturers complain that when they place orders overseas, it can take several months for delivery, or they sometimes cannot obtain the parts they want at all.

On the ground, there is a view that the larger the domestic parts supply chain grows, the more it will positively affect lowering the unit cost of finished robots. If Korean manufacturers use domestic parts, a robot parts ecosystem can form, and as the supply volume itself increases, a "virtuous cycle" is expected in which this contributes to a decline in parts unit prices over the medium to long term.

Domestic manufacturers are simultaneously investing in internalizing technology to enhance price competitiveness. A representative of parts company A said, "Fundamental technology is crucial to securing both price competitiveness and technological strength," and added, "Without fundamental technology, not only do additional time and costs arise in product development, but the lack of sustainability also becomes a critical issue." A representative of parts company C also said, "If you buy already-made parts or certain technologies, you have to pay royalties," explaining, "If you have your own technology, you can directly produce products and parts yourself, thereby minimizing costs."

Lee Isu, principal researcher at the Humanoid Research Group of the Korea Institute of Science and Technology (KIST), said, "If you rely only on foreign parts, you cannot achieve independent production, so in the long term your dependence increases and your profits do not rise sufficiently," and added, "For core components, localization is necessary."