Auto parts companies eye robotics market, leveraging precision manufacturing and mass production expertise

The robotics industry is emerging as a new market for companies that previously manufactured gears and motors for automobiles. This shift is occurring as the competition for humanoids moves beyond prototype development toward the stage of securing supply chains for core components.

For robot joints to move as precisely and repetitively as human limbs, the performance of driving components such as motors, reducers, and gears must be supported. Experts suggest that the precision machining technology accumulated by the auto parts industry, along with experience in consistently managing product errors and defect rates during mass production, could serve as a competitive advantage.

The 'Seminar on Strategies and Success Stories for Auto Parts Companies Entering the Robotics Industry' was held on the 22nd at the EL Tower Gold Hall in Yangjae-dong, Seoul, to discuss changes in the robotics industry and response strategies for domestic auto parts companies. The seminar was co-hosted by the Korea Auto Industries Cooperative Association and the Korea AI and Robot Industry Association, with sponsorship from DN Solutions.

China's advanced robot ecosystem... Korea's manufacturing opportunity lies in 'field experience'

Ko Tae-bong, Managing Director of the Research Division at iM Securities, explained that China is growing its robot finished products and component supply chains simultaneously. In China, companies supplying a wide range of parts—from motors and reducers to robot hands and housings—are forming a robot industry ecosystem. He noted that to compete with these entities, domestic companies must differentiate themselves through performance rather than price.

He identified the field experience accumulated by domestic manufacturing as the foundation for this differentiation. Beyond merely supplying parts, the experience of skilled workers in tasks such as welding and assembly can be utilized for robot learning. "The concept is to ensure that robots can eventually take over that know-how," he said, adding that field technology must be accumulated as data. The implication is that for robots trained in simulations to work on actual production sites, the experience gained during the manufacturing process is required.

Lee Tae-yeop, a Research Fellow at HMG Research Institute, pointed to the component supply chains formed in the automotive and consumer electronics industries as the reason for the rapid growth of the Chinese robotics industry. He explained that robot companies did not develop all necessary components, such as motors and reducers, themselves; instead, they reduced the time and cost of product development by dividing roles with existing component suppliers and engaging in joint development. The movement of algorithms and development personnel accumulated in the automotive autonomous driving field to the robotics industry was also cited as a factor that accelerated technological advancement.

"Robot companies do not purely develop 100% of the major technologies," Lee said. "Behind this, the role of component companies is significantly hidden." This implies that the competitiveness of the robotics industry depends not only on the technological capabilities of finished product companies but also on the component supply chains that support them.

While China is ahead in the component supply chain, opportunities remain for domestic companies. This is because global robot companies are diversifying their suppliers to reduce potential supply disruptions and technology security issues that can arise when component procurement is concentrated in a specific country. In this process, domestic component companies, whose production capabilities have been verified through the automotive industry, are being considered as alternatives. Lee reported that some global robot companies are visiting domestic component suppliers to discuss actual supply possibilities.

However, this does not lead to large-scale orders immediately. The process involves global robot companies and domestic component companies verifying component performance and manufacturing processes together on small-scale production lines, then expanding the component supply as robot production increases. Lee explained that this is similar to how the automotive industry has collaborated between finished vehicle manufacturers and component suppliers from product development to mass production, stating, "It is a matter of verifying together through small-scale lines and moving forward together when mass production occurs."

"Check customers and orders before technology and facilities"

Suggestions were made that for auto parts companies to secure supply opportunities in the robot market, they must first specify the items to be supplied and the target customers.

Park Seung-uk, center director at the Korea Automotive Technology Institute, explained that automotive part technologies such as gears, motors, and precision machining can be utilized in robot reducers and actuators. An actuator is a device that uses power from motors and other sources to move robot joints. He suggested entry paths such as supplying components like housings, gears, and shafts, or the contract manufacturing of parts designed by robot companies.

Park stated, "Robots are not a completely new industry, but will become a new market where existing manufacturing capabilities can be utilized."

However, he pointed out that the business environments of automobiles and robots are different. While the automotive industry has established a system of mass-producing according to specifications set by finished car manufacturers, the early robot market has low production volumes and frequent design changes. He noted that part companies must also adapt to a method of deciding product specifications and developing them together with customers.

"In automobiles, you just had to develop and mass-produce once the OEM provided the specifications," he said, adding that in the robot field, "you must move toward a system of creating specifications together with the customer, developing them, and then supplying them."

Park suggested that instead of investing in robot-specific facilities from the start, automotive part companies should produce prototypes using existing facilities or shared equipment. The method involves investing in dedicated facilities only after the order scale is confirmed through customer evaluation and initial deliveries.

"You must secure customers before technology, and confirm orders before facilities," he said. "In the early stages, there is a need for a process of deciding product specifications together with the customer and proving reliability through test data."

He also suggested that investment should proceed in stages in line with demand verification. The sequence is to produce prototypes with existing facilities or shared equipment, undergo customer evaluation and initial delivery, and then expand proprietary facilities once orders are confirmed.

Park stated, "You must secure customers before technology, and confirm orders before facilities." He also suggested a plan to first build a supply track record in the industrial and collaborative robot fields, which can utilize the same driving technologies, while preparing for the expansion of humanoid demand.

Precision and cost must be aligned together to secure mass production competitiveness

To link developed parts to mass production, one must also secure processes that lower production costs while meeting required performance.

Senior Manager Jang Hyeon-sik of DN Solutions explained that while humanoid parts require machining technologies similar to automotive parts, the production processes must be reviewed to meet requirements for weight reduction and precision. He noted that for thin aluminum parts, deformation during the cutting process must be suppressed, and for gear parts, quality must be secured through machining and heat treatment.

In particular, he pointed out that since production costs increase the more strictly tolerances (allowable dimensional errors) are set, it is necessary to distinguish between required precision and adjustable parts. The intention is for part companies, robot companies, and equipment companies to jointly review design and machining conditions and manage mass production quality.

Lee Taek-seong, chairman of the Korea Auto Industries Cooperative Association, said, "We must pay attention not only to China's price and production scale but also to the execution capability that connects technology to the field and the market." He added, "Companies should find robot part fields that fit their specific conditions and connect joint development and cooperation to actual business."

Chairman Lee also requested the government and research institutions to "link technology development to field verification and initial business to reduce the investment burden on companies, and actively support so that technology development can lead to actual business results."

Read the original (Korean)