Humanoids at $5 per hour doing the work of three: Why Big Tech is betting everything on them
As humanoid robots and physical artificial intelligence (AI) adoption accelerates, companies that built overseas factories to cut labor costs are expected to bring manufacturing back home in a wave of "reshoring." Since humanoid deployment and operating costs vary little by region, manufacturers are likely to concentrate humanoid-powered factories in advanced home countries where management and maintenance are easier. However, concerns are mounting that this trend could intensify "labor-robot conflicts" as unions and robots compete for jobs in developed nations.
According to industry sources on the 9th, humanoid productivity is projected to far surpass human workers within years. Companies that relocated to developing countries seeking cheap labor are now expected to return to technologically advanced nations to boost productivity.
If this phenomenon becomes widespread, the global manufacturing map could be dramatically redrawn. Until now, industries including shipbuilding, automobiles, and low-end electronics have gradually shifted to emerging industrial nations due to rising labor costs. But in the humanoid era, where labor cost burdens are significantly reduced, established manufacturing powerhouses are likely to maintain their dominance. Operating factories domestically substantially reduces risks of government interference and technology theft, while enabling companies to benefit from tax incentives and infrastructure support under domestic industry promotion policies.
"Companies where labor cost savings exceed the benefits of overseas factory operations will increasingly return home," said Kim Sang-bong, professor of economics at Hansung University.
Reshoring driven by humanoids replacing human jobs is likely to proceed faster in South Korea. According to the International Federation of Robotics (IFR), South Korea ranked first globally in 2024 with 1,012 robots per 10,000 workers, suggesting companies will actively embrace humanoid adoption.
The concern is the greater impact on jobs in South Korea, a manufacturing powerhouse. As humanoid-driven reshoring progresses, the labor market is expected to restructure around high-skilled technical workers capable of providing specialized AI data and maintenance managers, rather than simple production workers. This could intensify conflicts not only between companies and labor but also between high-skilled and low-skilled workers.
"In South Korea, where unions wield considerable power, job losses will face substantial resistance," said Shin Ho-chul, professor at Soongsil University's School of Business Administration.
Voices are emerging that labor must start preparing now to upgrade worker skills. A business community official said, "Current workplace retraining programs cannot adequately prepare for the rapidly changing humanoid era. Labor must also prepare for this transformation."
However, some urge caution in assessing employment market impacts. "Factory location decisions depend on tax policies, market proximity, and other conditions beyond labor costs, so we need to watch how reshoring unfolds with humanoid adoption," said Kim Doo-eol, professor of economics at Myongji University.