China's Humanoid Robot corporations are moving to internalize core parts. They are designing and developing some key components and actuators in-house or securing them through acquisitions, aiming to shift to mass production and improve manufacturing efficiency. After growing on the back of a rich parts supply chain, they are changing strategy to pursue vertical integration.
According to the robotics industry on the 20th, China-based robot company UBTECH Robotics held an extraordinary shareholders meeting in Shenzhen on the 10th (local time) and approved the acquisition of equity in robot parts manufacturer Zhejiang Fenglong Electric. UBTECH Robotics was the company that mass-produced the third-most 1,000 Humanoid Robots worldwide last year. The equity to be acquired totals 43%, worth about 1.7 billion yuan (about 368.3 billion won). It also secured 6 of 7 supervisory board seats, effectively gaining management control.
UBTECH Robotics is considered the company that has sold the most Humanoid Robots to industrial sites. It has shipped hundreds of units to factories at BYD and Foxconn and is seen as the closest to commercialization.
The industry views this as a move to remove risk and stabilize production expense by securing an in-house supply chain for core parts. Motors, hydraulic systems, and precision mechanical components (such as reducers) mainly produced by Zhejiang Fenglong Electric, a specialist in engine parts for machinery, are essential for making joints in Humanoid Robots.
AgiBot, which mass-produced the most Humanoid Robots last year, and Unitree, which ranked second in output, are both pushing to internalize core parts.
AgiBot is focusing on developing key parts in-house. In addition to independently developing the cerebellum and domain controllers of the Humanoid Robot LingXi X2 series, it unveiled OmiHand, a precision robotic hand that is a core component of Humanoid Robots, under its own brand in Aug. last year.
Unitree is pursuing parts internalization by designing joint motors such as "GO‑M8010‑6" and "A1 Motor" in-house. While dependence on the parts supply chain was high in the early development stage when speed matters, it judged that in-house design capabilities are essential to move into an integrated product manufacturing phase through mass production.
Actual expense savings are also said to be significant. Unitree is reported to have cut motor procurement expense to about half of what it would cost to buy externally through in-house development.
An unseen benefit is that costs can be stabilized and production coordinated because they are not affected by external market volatility such as price and supply-demand. If in-house developed parts lead to future design optimization, integrated parts expense can also be reduced.
In the robotics industry, considering the moves by these major companies, there is growing expectation that mass production will begin in earnest.
Han Chang-su, an emeritus professor of robotics at Hanyang University, said, "Internalizing parts is generally seen as a preparatory step toward mass production," adding, "When you make parts yourself, you can reduce costs and also enable differentiation through design optimization."
Meanwhile, although the parts development and manufacturing capabilities of Korean robot companies have reached a considerable level, many parts are still dependent on China due to weaker price competitiveness.
An industry official said, "Because of differences in market size and price, there are still quite a few cases of relying on Chinese parts," adding, "Since using Chinese parts means you cannot export to the United States, it is becoming important to expand the scale of parts companies through support."
Global research firm Counterpoint predicted that the number of Humanoid Robots actually deployed in the field will exceed 100,000 units in 2027. UBTECH Robotics is also aiming to increase its annual production to 10,000 units by 2027.