AI gets physical: Humanoid robots hit factory floors

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AI gets physical: Humanoid robots hit factory floors

Published: 13 Oct. 2025, 07:00

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

From left, Tesla's Optimus humanoid robot, Boston Dynamics' Atlas and Figure AI's Figure 02 [JOONGANG ILBO]

In the calculus of industrial profit, human labor has always been valuable, yet notoriously unpredictable as workers get tired, slow down or sometimes — in a particular sore point in Korea — strike.

But what if your factory hands never sleep, eat or make mistakes? For manufacturers obsessed with efficiency, humanoid robots are quickly becoming the ultimate solution.

Despite drawbacks like high price tags and limited reliability, Korea’s major manufacturers across sectors — from cars and ships to home appliances and steel — are stepping up their use of robots for tasks far more complex than just lifting boxes or patrolling aisles.

At the forefront is Boston Dynamics, a Massachusetts-based robotics company backed by Hyundai Motor, which is set to deploy its bipedal robot, Atlas, at Hyundai’s EV plant in the state of Georgia this October. Its initial role will involve parts sequencing, the pre-assembly process of organizing components in precise order according to vehicle specifications.

In a bid to develop a fully sovereign humanoid robot built entirely on domestic technology, Korea has established the "K-Humanoid Alliance" — a government-backed consortium comprising 40 companies and academic institutions — with plans to invest over 1 trillion won ($713 million) by 2030.

Industry Minister Kim Jung-kwan, right, shakes hands with a humanoid robot developed by Korean startup AeiROBOT during an event in central Seoul on Sept. 25. [YONHAP]

Era of physical AI

Nvidia CEO Jensen Huang captivated audiences by bringing up 14 humanoid robots as he took the stage at CES 2025 in January, saying that "the next wave of artificial intelligence will be physical AI” that “understands the laws of physics."

Physical AI — next-generation AI integrated into tangible systems like humanoid robots and autonomous vehicles — represents a major shift in how machines interact with the physical world. Designed to perceive their surroundings and execute tasks autonomously, such systems offer the potential for round-the-clock factory operations while drastically cutting per capita labor costs.

“In the end, robots are the only viable solution for labor in manufacturing. Within five years, humanoids will approach human-level capabilities, able to perform virtually any task a person can,” said Prof. Choi Byoung-ho from the Human-inspired AI Research center at Korea University.

“Structurally, companies will have no choice but to prefer machines over people, even more so in low-birthrate countries like Korea.”

Assuming a commercial unit price of $100,000, deploying a robot for 22 hours a day, with two hours reserved for charging, over five years would result in an operating cost of just $3.40 per hour, according to an estimation by Samsung Securities. If the unit price drops to $30,000, that cost falls further to $1.20 per hour.

While high upfront costs have long been a barrier to adoption, manufacturing expenses are now falling rapidly.

Goldman Sachs has predicted “faster commercialization” of humanoid robots, noting that the price for lower-end models has dropped 40 percent in just one year — from $50,000 to $30,000 — far surpassing the firm’s initial forecast of a 15 to 20 percent decline in a recent report.

Boston Dynamics' Atlas demonstrates ″part sequencing,″ its ability to autonomously sort, retrieve and place objects. [HYUNDAI MOTOR]

Tesla CEO Elon Musk has set a target price of $20,000 for its Optimus humanoid robot, and declared that almost “80 percent of Tesla's value will be Optimus” eventually. It has already introduced Optimus humanoid robots on the assembly line at its Fremont factory in California, with plans to increase that number to roughly 1,000 by the year’s end.

BMW has also deployed Figure 02 robots from startup Figure AI at its plant in Spartanburg, South Carolina. The robot is tasked with handling and assembling vehicle components, and is capable of processing up to 1,000 tasks per day. Compared to its predecessor, it boasts a fourfold increase in work speed and a sevenfold improvement in reliability.

“By integrating robots, automotive plants that currently operate 10 hours a day, including two hours of overtime, could run 24/7,” said Esther Lim, an analyst at Samsung Securities. “This could raise annual production from 300,000 to 500,000 vehicles, and cut total manufacturing cost of a vehicle — currently around 80 percent of its sales price — to as low as 44 percent.”

“If the number of deployed humanoid robots surpasses one million and unit costs fall further, production costs could be cut nearly in half.”

Morgan Stanley forecasts the humanoid robot market to reach $5 trillion by 2050, more than double the total global revenue of the automotive industry as of 2024. The firm estimates shipments will grow from some 13 million units in 2035 to over 1 billion in the 2050s, with more than 90 percent expected to be deployed for industrial and commercial applications.

Optimus, a humanoid robot by Tesla. [JOONGANG ILBO]

Hands-free from hazards and dirt

One of the most compelling strengths of physical AI is its capacity to take on hazardous tasks that pose significant risks to human workers — roles often linked to high rates of industrial accidents — thereby easing the operational burden on companies.

Posco DX, the digital transformation arm of Posco Holdings, is developing an unmanned AI crane for use at Posco's steel mills to transport irregularly sized and shaped products. Leveraging Nvidia’s Omniverse platform and Isaac Sim — a simulation tool that enables physically accurate modeling of robots, sensors and environments in a digital twin — the system undergoes virtual environment simulations that precisely replicate physical conditions, sensors, and systems for thorough validation.

“The immediate goal is to deploy the system at Posco steel mills, prioritizing hazardous environments such as high temperatures and pressures, as well as dirty tasks like removing slag that workers typically avoid,” said a spokesperson for Posco DX, adding that they aim to eventually offer the technology for external sales.

HD Hyundai Samho also deployed robots at its shipyard in Yeongam, South Jeolla for welding tasks, initially focusing on flat-block welding — a large, flat steel structure that forms part of a ship’s outer hull, typically assembled in the early stages of shipbuilding — which demands high precision and repeatability. Although the robots work more slowly than humans, their ability to operate for an average of 16 hours per day results in more than double the daily output.

“Humanoid robots are expected to be used first in workplaces with high risks of industrial accidents, such as construction, manufacturing and logistics sites,” said Zhang Byoung-Tak, head of the AI Institute at Seoul National University, who also leads the government-backed K-Humanoid Alliance.

“What once seemed unimaginable when computers first emerged is now becoming reality. With advances in AI and humanoid robotics, the paradigm is shifting, and unprecedented changes are on the horizon," said Zhang.

UBTech Robotics' Walker S2 humanoid robot is able to swap its battery on its own in three minutes. [SCREEN CAPTURE]

An AI crane that can be used to transport irregularly sized and shaped products developed by Posco DX, the digital transformation arm of Posco Holdings. [POSCO DX]

Data and talent: It’s a money game

While Korea struggles to gain momentum due to limited investment, a shrinking talent pool and modest patent filings, China and the United States are taking the lead in the physical AI race, driven by aggressive capital commitments backed by government support.

Since last year, Shenzhen-based UBTech Robotics has supplied its Walker S robots to manufacturing and logistics giants such as BYD, Volkswagen and Audi, securing contracts for over 500 units. The latest model, the Walker S2, features a self-replacing battery system, enhancing operational autonomy.

Unitree, based in Hangzhou, China, launched its G1 humanoid robot at 99,000 yuan ($19,000) — roughly one-tenth the price of comparable global models. The company shipped 1,500 units last year alone and has since expanded its lineup to include the high-end H1 and budget-friendly R1. Designed with mass-market appeal in mind, the robots can walk and run with humanlike fluidity.

In a Morgan Stanley list of 100 humanoid robots unveiled between 2022 and February 2025, 40 out of 66, or 61 percent, of manufacturers were Chinese. Sixteen were based in the United States or Canada, and only one Korean company made the list.

Chinese firms own some 5,590 international patents related to humanoid technology in the past five years, accounting for 55 percent of the globe’s total, far surpassing the United States at 1,442, Japan at 1,095 and Korea at 322.

Humanoid robots from Korean startups AeiROBOT, Rainbow Robotics, Robros and Blue Robin stand at a ceremony marking the launch of the "K-Humanoid Alliance" in central Seoul on April 10. [YONHAP]

“To build AI that truly approaches human-level capability, an astronomical amount of data is required, and that demands massive investment,” said Prof. Choi. “The necessary infrastructure also comes at a cost. If the government doesn’t step in, no one else can.”

“Talent is just as critical — and that, too, requires funding. Competitive compensation and working conditions are essential to attract talent to Korea,” the professor added. “Without that, even the talent we do have will continue to leave.”

As of last year, Korea recorded a net outflow of 0.36 AI specialists per 10,000 people, indicating that more AI talent left the country than entered. This places Korea near the bottom, ranking 35th out of the 38 member countries of the Organisation for Economic Cooperation and Development, according to a report by the Korea Chamber of Commerce and Industry.

Angel Robotics founder and KAIST professor Kong Kyoung-chul poses while wearing an exoskeleton robot currently in development. [JOONGANG PHOTO]

Semi-humanoid bridging the gap

For smaller robotics manufacturers, developing full-fledged humanoid robots demands immense time and financial resources. As a result, many have turned to wheeled robots, semi-humanoids and exoskeletons as a more feasible entry point.

Rainbow Robotics, currently 35 percent owned by Samsung Electronics, was founded in 2011 by the people who developed Korea's first humanoid robot, the KHR-3 Hubo, all the way back in 2003. With its humanoid robot technology for real-world applications maturing, the company released its RB-Y1 semi-humanoid system last year. The robot features two arms and a torso but a wheeled base instead of legs, with 80 of the robots sold to firms and institutions in Korea and in the United States, mostly for research purposes. The company also launched the RB-Y1C on Sept. 28, featuring upgraded software and safety certifications so that it could be used commercially in factories.

Since becoming the largest shareholder of Rainbow Robotics in 2024, Samsung expects to combine its AI and software technology with its acquisition's specialty, robotics technology, to foster the development of advanced humanoids. SBS Biz reported that Samsung Electro-Mechanics is already working with Rainbow to develop a robot arm that can be used to manufacture high-tech capacitors and semiconductor chips.

Neubility, better known for its food delivery robots that roam around the streets of Gangnam in southern Seoul, said its next step is to market humanoid robots that can work in factories. Neubility already has the expertise in robot intelligence: Its delivery robot, Neubie, uses Neubility sense software, pairing Nvidia’s Edge Computing platform with cameras to help the robot process, locate and steer itself around busy streets. And while the Neubie robots are wheeled and look far different from a humanoid, CEO Lee Sang-min claims that because they have already figured out the software side of things, they have a comparative advantage over other firms that lack the software.

The company is in the process of developing an autonomous mobile manipulation robot (AMMR), which adds a robot arm to its existing wheeled robots, so it could expand to patrol and distribution functions. The Neubility AMMR will be unveiled within this year and will hit the market before the second half of 2026.

Angel Robotics, too, has already commercialized its exoskeleton suits — also known as wearable robots — that help people with rehabilitation. The Angel Suit H10, as the first robot to be recognized as a medical device, is already in use at over 100 medical agencies and institutions around the country, being utilized as exoskeleton suits that help people walk again. While the company’s wearable robots look nothing like humanoid robots, the fundamental software that controls the exoskeleton, which reads the wearer's intention and interprets it into movements, acts as an offspring of physical AI, according to the company.

Neubility's Neubie delivery and patrol robots [CHO YONG-JUN]

And Korea is still not late to the physical AI game, according to Neubility's Chief Technology Officer Kang Ki-hyuk.

"I think in the case of physical AI, all countries are equally at the starting line," Kang told the Korea JoongAng Daily, explaining that vision language models used in the development of physical AI lack the raw data that the AI can learn from, an issue that all countries have.

"Korea is the country with the highest robot density in the world, and we also focus heavily on manufacturing — an area where physical AI is expected to shine the best," he said. "If we can utilize industry data and combine it with AI technology to synthesize firms in the manufacturing industry with robotics firms, we will be able to develop technologies that are not short of the global competitors."

BY SARAH CHEA, CHO YONG-JUN [[email protected]]