The market's center is shifting from generative artificial intelligence (AI) to physical AI. We are focusing on expanding our business, including setting up new factories, to secure our place in the emerging robot market.
At the SBB TECH factory in Gimpo, Gyeonggi Province, Chief Executive Ryu Jae-wan and Chief Executive Song Jin-woong said this on the 19th of last month. At CES 2026, the world's largest IT expo held in early January, humanoids took center stage, and they said they aim to deliver results in step with this technological shift.
Ryu, who earned his bachelor's and master's degrees in mechanical design at Seoul National University and has built more than 35 years of experience in the robotics field, oversees the company's technology, processes, and other business areas. Song, a graduate of Yonsei University's business administration program who has served as chief financial officer (CFO) of Glow, manages SBB TECH's accounting and investment.
◇ The path of SBB TECH's business expansion from making "ballpoint pen balls"
SBB TECH, in 1993, localized ballpoint pen "balls" that had been dominated by Japanese corporations by using ceramic materials. The ball at the tip of a pen looks simple to make, but even now only a handful of countries can produce it. That is because precise manufacturing technology is required to ensure consistent ink flow and high durability.
Bearings (components that reduce friction when machines rotate) used in advanced semiconductor processes are a business expanded from that base. Ryu said, "Bearing quality also depends on the 'ball,' which must be machined with uniform tolerance," adding, "The bearings we supply are 'ultra-thin' products that can only be produced with long-accumulated technical know-how, so they are differentiated from mass-produced items stamped out by the hundreds of millions in places like China, not only in price but also in quality."
The bearings SBB TECH produces are only 2–3 mm thick even at large diameters. They move precisely even in extreme environments of "vacuum and high temperature." By suppressing vibration and impurities, they are suitable for clean rooms (spaces that tightly control contaminants to prevent semiconductor defects). Because all processes have been localized, they can be supplied to the market at low cost. The company currently counts key semiconductor companies such as Samsung Electronics, SK hynix, and TSMC as clients.
Ryu said, "No matter how robustly a bearing is made, wear in the production process is unavoidable, so it must be replaced at regular intervals," adding, "Even if there is no failure, if a problem occurs in the bearing section, wafers and other items of even greater value can be damaged." Once adopted in a process, the business can generate relatively stable revenue.
◇ "Achieving industry No. 1-level quality in harmonic reducers"
SBB TECH invested the revenue earned from its bearing business into developing "harmonic reducers." A reducer is a device that precisely slows the high-speed rotation of a motor and converts it into the desired force and speed. Ryu said, "When machining ultra-thin bearings, fine force control is required," adding, "To carve material into a bearing, you must first fix it; if the clamping force is too strong it buckles, and if it is too weak it springs out during machining. The technology needed to control such strength is also related to developing harmonic reducers."
In 2013, SBB TECH became the first in Korea to commercialize harmonic reducers, but it encountered ups and downs in mass production. Ryu said, "Our prototype achieved a level of quality similar to Japan's industry leader Harmonic Drive, but mass production is a different problem," adding, "You need foundational technologies to optimize materials and heat treatment, and various equipment investments were likely a burden."
When these problems came to the fore, there was a change in control. In 2018, SBB TECH was incorporated into Songhyun Group, which had grown on a manufacturing base. Ryu and Song joined the company when the ownership change was underway. Song said, "Securing harmonic reducer mass-production technology and listing on the KOSDAQ market were achievements made after joining Songhyun Group."
SBB TECH built a mass-production system for harmonic reducers by leveraging heat-treatment know-how and other capabilities held by Songhyun Group. Ryu said, "We are confident that the quality of our mass-produced harmonic reducers has now been raised to about the industry's No. 1 level."
Based on its harmonic reducer mass-production technology, SBB TECH also produces "RV" reducers suitable for industries requiring high torque and "planetary" reducers that excel at high-speed rotation. It has also expanded into "steering and eccentric drives," which control travel trajectories and fine movements.
◇ "Physical AI market is blooming… we will deliver results in robotics and defense businesses"
All the businesses entered on the back of harmonic reducers are cited as key components that drive robots. SBB TECH also identified "robot actuators" (drive devices that combine reducers, motors, brakes, encoders, and drives in a single module), which can only be manufactured by concentrating the company's technological capabilities, as a future growth engine. Actuators are used in robot joints that execute precise movements.
SBB TECH will start operating its newly prepared factory in Cheonan this month to get a head start in the robot parts market. The site will produce more than 50,000 precision reducers annually, along with a substantial number of actuators. The Gimpo plant will focus on the bearing business.
Ryu said the experience of co-developing the small mobility platform "MobED" with Hyundai Motor Group helped in setting up the Cheonan factory. The DnL module, a type of actuator installed on the MobED, uses steering and eccentric drives developed by SBB TECH. Ryu said, "We poured companywide resources into consistently meeting Hyundai Motor's stringent quality requirements, and all the know-how we gained in the process will be reflected at the Cheonan factory."
Ryu also said, "Industrial robots typically use around six actuators, while humanoid robots need 28 or more," adding, "Even by simple math, a market more than five times larger will open than now."
Alongside the robot market, SBB TECH is also focusing on "defense." It currently supplies reducers and other components to Hanwha Aerospace, Huneed Technologies, LIG Nex1, and the Ministry of National Defense's Army Depot, among others. Song said, "On the sales side, we already achieved a turnaround last year," adding, "Leveraging the technical know-how built through collaborations with global automakers over the three years since our listing, our goal is to deliver results in the market and turn a profit next year."