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LG pushes AI tools to improve supplier manufacturing

LG Electronics said it is using AI and digital twin technology to help improve manufacturing processes among its partner companies.

The company highlighted cases where automation and real-time monitoring helped boost productivity and reduce defects at supplier factories.

In one instance, an air conditioner parts supplier doubled productivity while cutting defects significantly, while another partner reduced inspection time and defects using AI-based vision systems.

LG said it plans to expand the programme to production sites in China, Vietnam, and Indonesia, as part of its broader smart factory initiative.

The company added that it has supported more than 250 partners since 2019 and continues to provide funding to help suppliers invest in automation.

🔗 Source: The Chosun Daily

🧠 Food for thought

Implications, context, and why it matters.

LG’s partner support highlights its growing smart factory solutions business

  • The program fits LG’s smart factory solutions push, which it formally entered earlier in 2024 1.
  • It plans to sell smart factory know-how built over 66 years, using AI and digital twins (virtual replicas of real-world factory processes), to outside clients in semiconductors, pharmaceuticals, biotechnology, plus food and beverage 1.
  • The work sits within LG’s business-to-business (B2B) growth plans. LG targets a multi-trillion Korean won (KRW) smart factory solutions business by 2030, excluding revenue inside the LG Group 1.
  • LG also leans on results from its Changwon and Tennessee plants. The World Economic Forum recognized both as Lighthouse Factories (a designation for leading, advanced manufacturing sites) 2.

The factory floor is turning into a path toward the AI data center

  • The initiative captures how hardware companies aim to sell less tangible assets, including manufacturing data plus operations experience, as products for external customers 1.
  • Some of that work depends on close tech ties. LG says it is building real-time simulation systems with Nvidia’s industrial AI platform Omniverse, plus creating a physical AI model based on Nvidia’s Isaac GR00T 3. It also uses Nvidia robotics tools for simulation and training data generation 3.
  • Outside the plant, LG is also chasing AI data center cooling opportunities 4.
  • LG says it is seeking Nvidia certification for its coolant distribution unit, which sits at the center of liquid cooling systems for AI data centers 4.

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