Ministry of Industry Supports Commercialization of Innovative Ideas

Operation of the 'Electronic Innovation Manufacturing Platform' Supporting Initial Production and Commercialization of Innovative Idea Companies

[Sejong=Asia Economy Reporter Kwon Haeyoung] #Small and medium-sized enterprise A recently succeeded in developing an artificial intelligence (AI) speaker. Before mass production, trial production was necessary to verify quality, but there was no suitable place for small-scale manufacturing domestically, so they headed to Shenzhen, China. The time and cost for A to produce the initial 100 units were 13 days and 1.2 million KRW, respectively. From now on, companies with innovative ideas like A will no longer need to go overseas for trial production. This is because the government is establishing an 'Electronic Innovation Manufacturing Platform' to support rapid initial production. Producing the same 100 AI speakers domestically takes 3 days and costs 300,000 KRW, making it much more economical. The risk of technology leakage is also lower.

The Ministry of Trade, Industry and Energy announced on the 2nd that it will establish an electronic innovation manufacturing platform to support initial production and commercialization of innovative idea companies starting this year.

It is difficult to produce small quantities of products for market testing based on innovative ideas domestically. On the other hand, overseas is different. In Shenzhen, known as the Silicon Valley of China, with an area of 1.5㎢ and 40,000 electronics markets (Huaqiangbei) at its center, parts suppliers, design houses (design and small-scale production), manufacturing, and service companies are densely concentrated, allowing design, parts procurement, production, and distribution to be handled in one place. Accordingly, electronic manufacturing companies bear the risk of technology leakage and go overseas to find places where parts procurement, prototype production, inspection, and mass production can be done in one location.

The Ministry of Trade, Industry and Energy supports electronic manufacturing services accessible to anyone in electronic companies with innovative ideas to bring such demand back domestically.

First, infrastructure capable of rapid manufacturing and parts support will be established in regions where consumer trends are quickly reflected and parts supply, logistics, and distribution are smooth. Facilities and equipment capable of initial mass production in small quantities of 10 to 1,000 units before product launch will be built to support electronic companies in trial production of products at a level suitable for actual sales. A parts information system that can support manufacturing infrastructure will also be established to assist electronic companies in parts procurement, substitution, and joint purchasing, and to expand the application of newly developed domestic parts. Additionally, commercialization services to improve product functions and quality will be supported.

Kim Wanki, Director of the Materials Convergence Industry Policy Division at the Ministry of Trade, Industry and Energy, said, "Through the electronic innovation manufacturing support project, we will establish a virtuous cycle ecosystem for electronic manufacturing and create urban-type jobs," adding, "small-scale production demand that goes overseas will be absorbed by the electronic innovation manufacturing platform, and large-scale mass production volumes will be connected to hinterland industrial complexes, creating a virtuous cycle ecosystem for electronic manufacturing."

This content was produced with the assistance of AI translation services.