Robotis, a South Korean robotics company founded in 1999, is shifting its strategy to focus on actuators,the joint and muscle components that power humanoid robots,rather than building robots alone. The company's CEO Kim Byung-soo argues that in the emerging era of physical artificial intelligence, component makers will outlast robot builders who lack their own supply chains. With actuator demand expected to more than double annually, Robotis is expanding production capacity from 220,000 units last year to over 500,000 units this year, and planning a factory in Uzbekistan that will eventually produce 5 million units annually.

Why Are Actuators Suddenly So Critical to the Robot Economy?

Actuators function as a robot's joints and muscles, translating electrical signals into physical movement. As humanoid robot manufacturers race to scale production, the demand for reliable, high-performance actuators has become the bottleneck in the supply chain. Robotis, which launched its Dynamixel actuator brand in 2003, has spent over two decades perfecting this technology. The company's latest offering, Dynamixel-Q, is specifically engineered for humanoid robots and is already powering Robotis' own AI Sapiens humanoid robot.

The business case is compelling. Last year, Robotis posted record sales of 38.9 billion won (approximately $27.5 million) since its founding, with actuator sales accounting for 97.1 percent of total revenue. More importantly, the company returned to profitability with 3.3 billion won in operating profit, ending a four-year loss streak that had persisted since 2022. Growing orders from humanoid robot manufacturers drove this turnaround.

How Is Robotis Positioning Itself Against Chinese Competitors?

China currently leads the humanoid robotics market, with companies like Unitree producing robots at scale. However, Robotis CEO Kim Byung-soo sees an opening. He noted that many companies using Chinese robots would prefer to use their own, citing concerns about data accumulation. In the physical AI era, the "action data" generated by robots as they operate represents the most valuable asset for training future AI systems. Companies worry that this data is being captured by Chinese firms.

"Many companies are using Chinese robots right now, but deep down they want to use their own. They don't want 'action data',the most important asset in the physical AI era,accumulating inside Chinese robots," said Kim Byung-soo, CEO of Robotis.

Kim Byung-soo, CEO at Robotis

Robotis' AI Sapiens humanoid robot, unveiled in April, is designed to be competitive with Unitree's G1. At 135 centimeters tall compared to the G1's 130 centimeters, and with comparable knee joint structures, test results show AI Sapiens performs at a level slightly superior to the Chinese product. The robot can perform complex choreography, including arm movements and single-leg hops, demonstrating dexterity and balance.

What Are the Key Expansion Plans for Robotis?

Robotis is making significant capital investments to scale production. The company is currently building a factory in Uzbekistan with a target completion date of 2031 and a total production capacity of approximately 5 million actuators. Once the facility enters partial operation at year-end, combined capacity with Robotis' domestic Magok factory is expected to reach about 1.3 million units, according to industry estimates.

LG Electronics, which holds a 6.6 percent stake in Robotis as its second-largest shareholder, signed a memorandum of understanding in June to invest in the Uzbekistan factory. LG has been building its own actuator production line at its Changwon facility but is securing a stable supply of actuators from Robotis for its own humanoid robot development. This partnership signals confidence in Robotis' technology and production roadmap.

Steps to Understanding Robotis' Market Position

• Technology Foundation: Robotis has spent over 20 years building expertise in actuator design and manufacturing since launching Dynamixel in 2003, creating a deep moat against new competitors.
• Production Scaling: The company plans to increase actuator output from 220,000 units last year to over 500,000 units this year, with expectations to more than double production annually as humanoid robot demand accelerates.
• Supply Chain Control: By securing its own actuator production and expanding internationally, Robotis aims to become an indispensable supplier to humanoid robot manufacturers globally, reducing dependence on Chinese suppliers.
• Data Advantage: As humanoid robots powered by Robotis actuators accumulate operational data, that information stays within non-Chinese ecosystems, addressing geopolitical concerns about data sovereignty in the physical AI era.

What Does Robotis' Strategy Mean for the Broader Robot Market?

Robotis CEO Kim Byung-soo used a historical analogy to explain the company's pivot. In the age of horse-drawn carriages, he noted, there were three types of companies: those focused on horses, those focused on coachmen, and those focused on carriages themselves. None of them survived the automobile revolution. His point: in the humanoid robot era, component makers who control critical supply chains may outlast robot builders who lack vertical integration.

"In the age of horse-drawn carriages, there were three kinds of companies: those that believed the horse was what mattered, those that insisted the coachman was the key, and those that focused on developing the carriage itself. In the end, none of them won because the automobile arrived," said Kim Byung-soo.

Kim Byung-soo, CEO at Robotis

Kim also called for South Korea's government and stock exchange regulators to take robotics more seriously. He pointed out that Unitree, a Chinese competitor, is listing on the Shanghai exchange this month with an expected valuation around 21 trillion won, while U.S. firm Figure AI, still pre-IPO, is valued at approximately 54 trillion won. By contrast, Robotis, despite being the first domestic robot company to list on South Korea's Kosdaq exchange in 2018, faces barriers to listing on the larger Kospi exchange, which remains conservative toward robot companies.

Cho Kyu-jin, a mechanical engineering professor at Seoul National University and newly elected president of the IEEE Robotics and Automation Society, praised Robotis' approach at a recent Physical AI Frontier National Strategy Forum. He emphasized that for Korea to expand its global reach in robotics, the country needs multiple world-class hardware companies, not just one. Hardware, he noted, is inherently difficult to replicate and travels well as an export, making it a strategic asset for national competitiveness.

As the humanoid robot market accelerates from prototype to production, Robotis' bet on actuators reflects a deeper truth: the companies that control the fundamental building blocks of physical AI may prove more valuable than those that assemble them into finished robots. For South Korea, a latecomer to humanoid robotics, securing this supply chain advantage could be the difference between becoming a major player in the physical AI era or remaining a peripheral participant.

" }