EDITORIAL: Taiwan’s place in future of robotics

Chinese robot maker Unitree Robotics’ highly anticipated initial public offering (IPO) on the Shanghai Stock Exchange’s Science and Technology Innovation Board has drawn robust interest from retail investors, with its initial online retail tranche more than 8,000 times oversubscribed, the Hangzhou-based company said in a filing last week. Unitree offered 40.45 million shares at 150.80 yuan each, aiming to raise about 6.1 billion yuan (US$904.61 million) ahead of its expected debut as the first publicly traded humanoid-robot maker listed on mainland China’s A-share market.

Unitree’s prospectus says it mainly develops, produces and sells high-performance general-purpose humanoid and quadruped robots, components and embodied intelligence models. It plans to use the IPO proceeds to support its artificial intelligence (AI) model development, research and manufacturing expansion, the prospectus says. The IPO would value the company, known for its G1, H1 and R1 humanoids that can dance and perform martial arts, at about 61 billion yuan.

Unitree’s listing could build momentum for other Chinese robot companies seeking an IPO for much-needed capital, as developing humanoid robots requires heavy spending on talent, AI models and manufacturing. The growth of those companies would also bolster Beijing’s drive to dominate a burgeoning field in which AI is combined with robotics to learn and interact with the physical world. Government backing helped Chinese humanoid makers command more than 97 percent of global shipments in the first half of this year, data released last week by California-based Smart Analytics Global showed.

In the past few years, generative AI, large language models, high-performance computing and cloud-based data centers have made AI the focal point of global technological competition. Tech companies are increasing their investment in AI infrastructure, while the semiconductor industry is expanding supplies of AI chips and computing capacity. The AI wave is more than a technological leap; it is a trend that is set to reshape the global industrial structure.

History shows that technological revolutions redefine how human beings connect with the world. Just as the Internet transformed information transmission and the emergence of smartphones reshaped people’s daily lives, the adoption of robots foretells a new era of human-machine collaboration and marks the beginning of the next technological era covering AI, semiconductors, high-performance computing, sensors, precision manufacturing, automatic control and energy supply.

The value of humanoids lies not only in their appearance, but also in their ability to collaborate with humans in existing environments, with applications across manufacturing, logistics, healthcare and home services. In manufacturing, humanoids are expected to help increase automation amid global labor shortages and the need to improve efficiency. Humanoids could also be critical in meeting demand for care and daily living assistance in many developed countries, where birthrates are falling and people are living longer.

Behind Unitree’s listing fever is a hidden concern — whether the company, as well as other robot makers, can sustain profitability and monetize humanoids at scale. Even Unitree acknowledged in its prospectus that large-scale commercialization of its humanoids could take longer than expected, as much of the current demand is concentrated in research and education. That means it could be years before any large-scale, economically proven deployment of its humanoids in factories, warehouses or households. The development of humanoids also faces challenges such as high production costs and low return on investment, as well as unresolved issues regarding safety, reliability and regulations.

Even so, Unitree’s IPO could serve as a barometer for how the capital markets view this exciting yet nascent industry. Most importantly, how investors evaluate the industry would shape their expectations, influencing market outlooks, the ability to attract talent, venture-capital flows and other opportunities. The catch, as history has shown, is that breakthrough technologies often undergo a cycle of excessive optimism and inflated expectations, as seen in the dotcom bubble and clean energy investment booms.

Taiwan has yet to produce complete humanoid robots at scale, and related industries remain at an early stage of development. Taiwan’s primary opportunity in humanoids lies in leveraging the nation’s comprehensive semiconductor ecosystem, information and communications technology supply chain, and precision component manufacturing to supply critical hardware and edge-AI software for global robotics markets rather than mass-producing complete humanoids. Local firms could also specialize in high-value joint modules, active-perception technologies for robotics, and practical service applications for healthcare and smart manufacturing. Moreover, the nation plays a critical role in the global “non-red” supply chain because of the trust Taiwan enjoys among democratic countries.