Siemens President and CEO Roland Busch says some smaller manufacturers should first organize factory data and set staged digitization goals, as South Korea plans more than 5 trillion won for smart manufacturing by 2030.
The Korea Herald reported Busch’s advice in an interview, saying companies should set goals for the coming months, the next year and beyond. He said factory AI relies on both production knowledge and data. Some firms may need basic data systems and tools before they can use digital applications, an investment that can come before quick returns, the interview reported.
The Office for Government Policy Coordination (OPC) announced Oct. 29 that South Korea plans to direct more than 5 trillion won toward smart manufacturing innovation by 2030. The plan targets digital upgrades at 30,000 small manufacturers and AI adoption at 6,000. It aims to lift the digital transition rate from 30% to 50% and AI adoption from 1% to 10%.
The Ministry of SMEs and Startups (MSS) plans to align assistance with companies’ readiness, helping firms with limited digital capacity establish basic capabilities before expanding AI use. It also plans to standardize manufacturing data. Under the proposal, eligible data contributions to government programs could count in kind and help reduce companies’ cash outlays.
The Ministry of Trade, Industry and Resources (MOTIR) has cited a shrinking working-age population, an aging skilled workforce and slower labor-productivity growth as pressures on manufacturers. Its AI Factory Flagship Project has supported AI transformation at more than 170 manufacturing sites. Productivity averaged 30.1% higher and defect rates were 15.5% lower at 42 earlier sites with measurable results. The ministry did not say how long the comparison covered, whether small firms were represented, or what portion of the change came from AI.
The Korea Herald also reported that Siemens is developing digital training for manufacturers and may offer financing in some cases. The interview provided no financing terms or amounts. The government’s stated adoption targets run through 2030.
