Hiwin Technologies, a prominent Taiwanese manufacturer of precision components, is intensifying its presence in the fast-growing fields of artificial intelligence and robotics. The company, known for its production of harmonic reducers and ball screws, has broadened its operations to include fully integrated robotic systems. Hiwin has already secured a role as a key supplier to major robotics firms and is also developing AI-powered robots tailored to the needs of the logistics sector. The firm indicated that visiting clients in May were pleased with its progress, with small-scale orders expected to begin by the end of the year.
Diverse robotics portfolio and market dynamics
At a recent investor conference, Hiwin chairman Eddie Chuo outlined the company's strategic focus. While Hiwin's integrated systems primarily target wafer-handling robots for the semiconductor industry and newly developed specialized robots, its humanoid robot endeavors are centered on component supply. Chuo highlighted that robots tailored for particular tasks are expected to reach widespread adoption faster than humanoid robots. Nevertheless, he provided a key insight regarding the timeline for the large-scale manufacturing of humanoid robots.
Hiwin's robotics business has seen notable growth, with its share of revenue rising from 7% in the fourth quarter of 2024 to 9% in the first quarter of 2025, driven primarily by demand for wafer-handling robots. Benefiting from global semiconductor fab expansions, Hiwin's wafer robots and transfer systems are experiencing robust demand, with a promising order pipeline signaling sustained growth in 2025.
Pioneering AI logistics robots with global partners
In late 2024, Hiwin announced a collaboration with a US logistics startup to develop AI-powered robots tailored for logistics applications. This partnership leverages Hiwin's expertise in custom multi-joint robotic arms, integrated with the startup's advanced AI vision systems, to enhance material handling efficiency and reduce reliance on human labor. Chuo noted that the client's May visit confirmed smooth progress, with small-batch shipments anticipated by the end of 2025.
Humanoid robots: Promising but still emerging
Hiwin maintains close ties with leading humanoid robot manufacturers, supplying critical components like ball screws, which are integral to robotic hands and fingers. A single robotic hand, for instance, requires 34 ball screws—one for nearly every finger joint. While confidentiality agreements limit detailed disclosures, Hiwin is actively engaged in sample testing with major players. One notable humanoid robot producer plans to manufacture 1,000 units in 2025, with the possibility of increasing production tenfold in later stages if initial goals are met.
However, Chuo cautioned that humanoid robots face significant hurdles before achieving economies of scale. He expressed skepticism about industry claims that humanoid robots could retail for US$50,000 to US$60,000, citing the high costs of components, AI integration, and batteries.
For context, a traditional industrial robotic arm with a 60-kilogram payload retails for approximately US$20,000, while a humanoid robot, comprising dual arms, legs, hands, and advanced systems, would require substantial cost reductions to meet such price targets. Chuo highlighted that even a single robotic hand's 34 ball screws underscore the complexity and expense involved.
Auto industry as a catalyst for humanoid robots
The automotive sector is emerging as a key proving ground for humanoid robots, with several manufacturers backed by or collaborating with automakers. Apart from Tesla's notable initiatives, startups such as Figure, which is partnered with BMW, and Apptronik, associated with Mercedes-Benz, are advancing humanoid robot development. Meanwhile, Chinese companies, including BYD and Xpeng are entering the market directly. This pattern indicates that the automotive industry is likely to be the first to implement humanoid robots on a large scale.
However, the robotics market remains dominated by established players like Japan's Fanuc and Yaskawa Electric, particularly in automotive applications. Chuo noted that these industry giants show no signs of decline due to humanoid robot competition, suggesting that current humanoid robot efficiency falls short of replacing traditional systems. He proposed this as a critical indicator: the operational performance of these leading robotics firms will signal when humanoid robots begin to disrupt the market.
While specialized robots, such as those for logistics, welding, or agriculture, are expected to ramp up production within two to three years due to their simpler operational environments, humanoid robots require further maturation. Chuo predicted that, over the next three years, humanoid robots are unlikely to supplant even traditional industrial robots, let alone collaborative models, due to cost and technical challenges.
Article translated by Sherri Wang and edited by Jerry Chen
