As global supply chains shift, China's exports of factory robots see a sharp rise

Straits Times

15 hours ago

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– As new factories spring up in South-east Asia and elsewhere in a global rejig of supply chains, made-in-China robots that staff production lines and handle logistics are rolling out with them.
Shipments of factory robots from China – including robots produced there by foreign manufacturers – have risen every year since the Covid-19 pandemic, nearly tripling in value from 2020 to reach US$1.13 billion (S$1.45 billion) in 2024.
Exports for the first half of 2025 hit US$746 million, a year-on-year growth of almost 60 per cent, according to figures from China's General Administration of Customs. The top three destinations were Vietnam, Mexico and Thailand, The Straits Times' calculations show .
'The sharp rise in shipments (to these countries) underscores the ongoing shift of manufacturing capacity away from the mainland,' said Dr Dan Wang, China director at consultancy Eurasia Group in Singapore. She added that the bulk of such exports were lower-end models for the automotive and electronics sectors.
Trade tensions, rising costs and a pursuit of supply chain resilience have prompted both Chinese and foreign firms to diversify production away from the 'factory of the world'.
The relocation of supply chains represents a business opportunity for Chinese industrial robot-makers in a market dominated by Japanese and European incumbents, said Mr Su Lian Jye, chief analyst at Singapore-based technology research firm Omdia.
'If a Chinese company is expanding overseas, they will bring their local supplier (of factory robots) along as well,' he said.
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Siasun Robot & Automation , a leading Chinese factory robot-maker based in north-eastern Shenyang city, said it has benefited in part from such a dynamic.
'When we first set up a branch in Thailand in 2021, our first customer was a Chinese carmaker,' said Mr Zhao Chen, chief executive of the company's Asia-Pacific headquarters in Singapore. The client, which had previously used Siasun's robots in China, engaged the company to outfit its new production line in Thailand.
Some foreign companies that had used Siasun's robots in China also placed subsequent orders for their overseas factories in places including Malaysia, Singapore and Germany, boosting the company's sales, Mr Zhao told ST.
Siasun's products includ e automated guided vehicles that can move goods around factories, warehouses and ports, as well as robotic arms which can move along six axes to perform tasks like car welding.
The company's exports nearly tripled from 2020 to reach 507 million yuan (S$90.7 million) in 2024, according to its earnings statements.
Over at Jaka Robotics in Shanghai, vice-president Liz Chang said her company has gained 'significant market opportunities' as more industries move into South-east Asia, leading to demand for fresh production capabilities.
A number of its major clients in China, including Japan's Toyota, the US' Flextronics and China's Luxshare Precision, have factories in South-east Asia, she said, and the company – which opened an office in Malaysia in 2023 – sees the region as a key export market.
Jaka's collaborative robots – robots that can work safely alongside humans – have been put to work in factories in South-east Asia that make car parts, electronics, food and beverages, and more, she added.
Outbound direct investment by Chinese firms in South-east Asia surged 34.7 per cent year over year in 2023, according to the Commerce Ministry's figures. The manufacturing industry was the largest recipient .
Omdia's Mr Su said the international market for industrial robots is still dominated by Japanese and European firms, whose advanced robots are integrated with clients' systems and prized for their reliability and precision.
But Chinese robot-makers are gradually gaining a larger slice of the pie, helped by their competitive pricing, he said. By his estimate, China's industrial robots cost about 30 per cent to 35 per cent less than those made by its foreign competitors.
Companies making robots and their components have mushroomed in China, as the country in 2015 mounted a push to become a production hub in this and other high-tech industries. Today, it has more than 930,000 companies in robotics-related fields, according to figures cited by state media in August 2025.
The output of industrial robots has also surged: China produced some 369,316 units in the first half of 2025, up 35.6 per cent year on year, official figures show.
China itself is the world's largest market for industrial robots, but fierce domestic competition has also driven Chinese robot-makers to venture abroad.
One such firm is Speedbot Robotics, a Changsha-headquartered company that makes intelligent industrial robots, including one that can scan and detect spray-painting defects in car factories.
'We are looking to expand to areas such as South-east Asia, where the automotive manufacturing industry is growing,' said Mr Wei Xinghua, deputy sales director at the company, which already sells such robots to Canada.
Another is Fairyland Technology from Wuhan, which intends to start selling its robots overseas in the second half of the year, said sales engineer Gong Jiawei.
He added: 'We have pretty much sold to every domestic client we can possibly get, and we've appointed and trained dedicated staff to serve the foreign market.
'We are ready to go big overseas.'