south korea Archive

Samsung Developing Robots To Replace Cheap Chinese Labor

The South Korean ministry of trade, industry and energy has granted electronics major Samsung a million dollar finding to build affordable factory robots which can perform convoluted tasks usually carried out by adept human hands.

As per Government statement, the $14.8 million investment is meant to assist the manufacturing sector to compete with cheap labor readily available in China. Samsung has been given an assignment to develop Precision Robots, which are usually imported from foreign countries and are rather costly. The South Korean Government expects Samsung to carry out the assigned task by the end of 2018.

As per the statement released by the ministry on behalf of the South Korean Government:

“Once affordable robots reach the market and we more widely used, it can lead to the creation of smart factories and bring about far-reaching innovations to the manufacturing sector.”

Samsung, along with its many Smartphone manufacturing competitors, relies on cheap labor to produce and assemble many of its devices including Smartphones and other consumer electronics. The increased labor wages have led prominent tech companies from around the world to face diminished profit margins. This seems the principle reason behind Samsung’s move towards automated factories.

Metro UK had previously reported that Samsung is taking another step towards an automated-dominant world. The electronics major has now confirmed that it is in collaboration with the South Korean Government to build precision machines that would potentially be able to replace the human workers

According to IFR, there has been a significant rise in the requirement for robots in the past few years, which apparently means that many industries are eager to deviate from manual human work to automated robots. In its report, IFR has interpreted that

“In 2014, robot sales increased by 29% to 229,261 units, by far the highest level ever recorded for one year. Sales of industrial robots to all industries increased compared to 2013. The automotive parts suppliers and the electrical/electronics industry were the main drivers of the growth.”

Merely 10 percent of all manufacturing operations are consummated by robots; however the figure is expected to rise to 20% by 2025.

According to Wired Magazine, Samsung also has intentions to develop motors, controllers, precision machines and sensor encoders using automated plants.The South Korean ministry has also claimed that if the project is successfully realized, Samsung will cater blueprint of bulk-produced, six-axis vertical enunciate robots which ultimately will decrease the labor reliance to make consumer electronics.

Previously Apple supplier Foxconn Technology Group had also hinted of its intentions to use robots and other automated equipment and machinery to carry out 70% of its assembly line work.

The Government wants the home country to become a robotics powerhouse- a corner which has long been occupied by the neighbor country, Japan.

The question is will the tech giant be able to build robots to successfully develop consumer electronics? What will be the influence of this move on the manufacturing sector of the country? What consequences the economy will face with replacement of labor with the automated machinery? Is this destiny of any(or all) other industry(s)as well? A little wait will reveal the facts but for now huge hopes and expectationshingeon the South Korean company’s output for the effective future change.