At the recently concluded 2025 (14th) OFweek China Robotics Industry Conference (held on April 10), I attended on behalf of China Exportsemi, and noticed a shift in the atmosphere. While the event remained as popular and lively as in previous years, a calmer industry consensus emerged: China’s industrial robotics market is transitioning from rapid growth to systemic optimization and value-driven development.
As a media outlet deeply focused on the broader semiconductor ecosystem, we’re especially interested in the strategic roles that systems and chips play in China's robotics push abroad. System-level capabilities determine the depth and resilience of the robotics industry, while chip-level breakthroughs offer a sharper edge in penetrating global markets. To succeed globally, Chinese robotics players must go beyond product iteration and embrace architectural innovation.
Contrary to the popular perception of a booming robotics sector, many industrial robotics companies in China are facing a sobering reality: fewer projects, intense price wars, and slower payments. As one conference participant remarked, “Not only are orders shrinking, but pricing is starting to feel like the home appliance industry.”
Clearly, the market remains active, but sustainable, scalable business models are still a work in progress. Yet often, bottlenecks are precisely where breakthroughs begin. Through conversations with numerous robotics manufacturers, a more defined pathway to global success has emerged—one that prioritizes system leadership, leverages chip advantages, and executes a layered strategy to identify global opportunities for Chinese robotics.
Picture: 2025 (14th) OFweek China Robotics Industry Conference
1. Systems and Chips as Breakthrough Points—But Require Layered Strategies
For many robotics firms, expanding global is a vital strategy to ease domestic pressure and tap into new growth. But how can this be done effectively? I've come to the following conclusion:
Chip Strategy: Target Cost-Sensitive Markets
Chinese companies have a notable edge in the mid-to-low-end chip segment due to:
-Strong cost control (especially in areas like MCUs, motor drivers, and basic AI chips)
-Rapid response and product iteration
-Tight integration between chip and system, yielding efficiency dividends
These strengths position them well in cost-sensitive emerging markets such as Southeast Asia and Latin America. One compelling example: a Chinese firm successfully replaced Japanese and Korean brands in Thailand using a locally adapted visual chip combined with an AGV solution—demonstrating a competitive price-performance ratio.
Control System Strategy: Capture Vertical Market Opportunities
Compared with chips, control systems offer more room for Chinese companies to dominate in specialized application scenarios—particularly in niche “long-tail” markets like agricultural automation, solar panel cleaning, or construction robotics, where Western giants have limited presence.
Key advantages include:
-High adaptability to non-standardized applications
-Deep operational know-how from complex on-the-ground deployments
-The ability to lock in ecosystem advantages through proprietary logic, communication protocols, and data loops
Firms with mastery in control algorithms, industry-specific know-how, and system-level standards could evolve into ecosystem leaders—shifting from mere device providers to integrators of intelligent solutions.
Picture: Popular Exhibition Booths at the Robotics Industry Conference
2. Avoid Head-On Battles—Leverage the “Combo Strategy”
It’s important to recognize the limitations: high-end chip exports remain constrained by both technical gaps and geopolitical restrictions. In fields like automotive-grade MCUs or high-performance AI chips, China still requires another 5–10 years of development. Likewise, the high-end general-purpose industrial robotics market is still dominated by incumbents like KUKA, ABB, and Fanuc, making direct competition unrealistic in the near term.
Thus, rather than going all-in across the board, Chinese robotics companies should adopt a layered breakout strategy:
-Use domestically developed chips to target cost-sensitive segments (e.g., AGVs, basic collaborative robots)
-Leverage proprietary control systems to penetrate scenario-specific markets (e.g., solar panel maintenance, mining inspection)
-Integrate both into full-stack solutions that build long-term ecosystem advantages and application lock-in
This multi-pronged approach offers the most realistic and sustainable path for global expansion at this stage.
3. A Shift from Hardware Export to System Export
In recent years, Chinese robotics companies have largely focused on exporting hardware—competing on price and fighting for distribution channels. But a new era is emerging—one that prioritizes system-level exports.
To thrive in this shift, companies must:
-Build cross-platform control capabilities—able to work with both domestic chips and -global platforms like NVIDIA
-Develop scenario-driven leadership—accumulating reusable control algorithms and modular applications
-Strengthen their core capabilities—deepening integration between hardware and software, and maintaining control over supply chains and algorithm frameworks
Chips and control systems may indeed be the entry points for internationalization, but long-term success requires companies to rise from hardware-driven expansion to system-centric leadership—charting a more defensible and high-value globalization path.
Disclaimer: The views in this article reflect the author's personal observations and insights from the conference and do not represent investment advice or commercial endorsements. The opinions expressed do not reflect those of the event organizers or China Exportsemi. All content is copyright of China Exportsemi, unless otherwise noted. For reproduction or commercial use, please contact us for authorization.
