Servo Motors & Magnets

Monolithic Power Systems has entered a new long-term agreement with GlobalFoundries to expand production capacity for its advanced power management technologies. Under the deal, Monolithic Power will deploy its proprietary process technology at GlobalFoundries' advanced 300mm manufacturing facility in Singapore, with volume production expected to begin in early 2027. The added capacity is intended to serve rising demand across artificial intelligence, automotive, industrial and data center markets, including automotive platforms, industrial robotics and automation, and smart power stages for AI and cloud infrastructure. Monolithic Power faces competition from Analog Devices and Microchip Technology, both of which are also expanding manufacturing capacity. Monolithic Power shares have risen 43.3% over the past year versus 40% growth for the industry, and 2026 earnings estimates have increased 12.7% to $27.11 over the past 60 days while 2027 estimates have risen 18.5% to $34.73.

Leadshine Technology disclosed its 2026 half-year report on August 27. First-half revenue was 1.247 billion yuan, up 39.92 percent year on year, and net profit attributable to the parent company was 194 million yuan, up 62.79 percent. Second-quarter net profit surged 92.49 percent year on year, continuing a quarter-by-quarter acceleration trend. Servo system revenue reached 661 million yuan, up 54.82 percent, becoming the primary growth engine. Orders in hand for frameless torque motors exceeded one million units, and robot components such as dexterous hands have begun volume shipments. Although the company's earnings growth ranks among the top humanoid robot concept stocks, its price-to-earnings ratio is about 58 times, lower than peers such as Zhaowei Machinery and Moons' Electric, and the market remains divided on its valuation. Net operating cash flow fell 14.01 percent year on year, and accounts receivable accounted for 25.75 percent of total assets, so the quality of growth still needs to be watched.

Zhenyu Technology released its 2026 interim report on August 26. During the reporting period, it achieved operating revenue of 6.394 billion yuan, up 58.01 percent year on year. Net profit attributable to the parent company was 423 million yuan, up 100.30 percent year on year. Non-GAAP net profit was 412 million yuan, up 108.37 percent year on year. Precision structural components remained the core revenue source, generating 5.089 billion yuan, accounting for nearly 80 percent of total revenue and rising 59.05 percent year on year, with a gross margin of 15.02 percent. This was mainly driven by surging demand for new energy vehicle drive motor cores and lithium battery precision structural parts. The company has deeply tied itself to leading automakers such as BYD, Xiaomi, and Li Auto, as well as lithium battery leaders including CATL and EVE Energy. However, net cash flow from operating activities was 59.1663 million yuan, down 66.07 percent year on year, mainly due to changes in customer payment methods and account periods. Accounts receivable reached 5.176 billion yuan at the end of the period, accounting for 33.58 percent of total assets, creating capital occupation pressure. In addition, humanoid robot related products have entered the verification or small batch supply stage and are expected to become a second growth curve.

Xinje Electric released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 1.102 billion yuan, up 25.60 percent year on year. Net profit attributable to the parent company was 155 million yuan, up 21.98 percent year on year. Non-GAAP net profit was 132 million yuan, up 12.54 percent year on year. Among these, drive system product revenue was 564 million yuan, accounting for 51.23 percent of the total and up 30.27 percent year on year. Programmable controller revenue was 366 million yuan, accounting for 33.20 percent and up 16.57 percent year on year. Embodied intelligence business revenue was 60 million yuan, surging 114.70 percent year on year and becoming the largest growth engine. The company said the profit growth mainly benefited from recovering demand in downstream new energy, semiconductor, and robotics sectors, as well as the commercial deployment of core components for humanoid robots. Research and development expenses were 109 million yuan, up 28.15 percent year on year, supporting technological breakthroughs in key components such as coreless motors and frameless torque motors. Looking ahead, the company is optimistic about opportunities brought by equipment renewal and the industrialization of humanoid robots, but it needs to watch for intensifying industry competition and accounts receivable risks.

The Xi Jinping administration has moved into full gear to commercialize humanoid robots. Beijing last week hosted a series of events under the banner of Robot Week, including a global conference to showcase development capabilities and a sports competition to test performance. With state-owned enterprises taking the lead, China has put in place a mass production system mobilizing both the public and private sectors, expanding the front line of the US-China high-tech rivalry. Under the 15th Five-Year Plan, a five-year program starting in 2026, the Chinese government has designated AI-powered humanoid robots as a priority area. On the 19th, it established a consortium of more than 100 organizations, including companies and universities, to achieve early mass production. China's largest state-owned land weapons manufacturer is taking command, and a public-private fund that will contribute about 1 trillion yuan to AI and robotics has also been launched. According to a US research firm, global humanoid robot shipments in the first half of this year totaled about 19,100 units, with Chinese players accounting for more than 97 percent. However, commercialization is still only halfway there. At Unitree Robotics, industrial-use robots account for less than 10 percent of revenue. Humanoid robots are said to have their brains in the United States and their bodies in China. Chinese players remain dependent on the US for AI semiconductors, and Unitree is jointly developing research robots with Nvidia, a major US chipmaker. The Trump administration, wary of Chinese products sweeping the US market, has moved preemptively to tighten regulations. In June, the Department of Defense designated Unitree as a Chinese military company, and in July the Federal Communications Commission restricted certification of its new models. Humanoid robots have become a key battleground for economic security, following semiconductors and drones. But US Treasury Secretary Scott Bessent has stated clearly that he does not want decoupling, arguing that restrictions on China must be limited to strategic areas. The day after Unitree's listing, CEO Wang Xingxing acknowledged that robots are currently less efficient than humans, pouring cold water on the enthusiasm for commercialization. The US-China contest over humanoid robots has entered a prolonged struggle, with mutual dependence still intact.

Zhongke Sanhuan released its 2026 semi-annual report, achieving operating revenue of 3.614 billion yuan, up 23.67% year on year, and net profit attributable to shareholders of the listed company of 49.2127 million yuan, up 11.86% year on year. The company's gross margin for magnetic materials products rose to 12.63% in the first half, an increase of 3.24 percentage points from the same period last year, mainly due to growth in core product sales and cost-reduction measures such as optimizing formulations and processes and reducing heavy rare earth consumption. Overseas markets achieved operating revenue of 1.998 billion yuan, up 44.05% year on year, becoming an important engine for revenue expansion, but exchange rate fluctuations caused financial expenses to shift from a net gain of 62.7045 million yuan in the same period last year to a net expense of 83.1455 million yuan. The company's first-half research and development investment was 65.3946 million yuan, up 11.80% year on year, and it established a company-level technology innovation center focusing on key areas such as humanoid robots and high-efficiency energy-saving motors.

Fangzheng Motor disclosed its 2026 semi-annual report, with net profit attributable to the parent of 24.3765 million yuan in the first half, up 438.74% year on year. During the reporting period, the company achieved total operating revenue of 1.717 billion yuan, up 35.77% year on year, and shipped 584,300 new energy drive motors, up 51% year on year, with cumulative shipments of 4.68 million units and supporting nearly 50 vehicle models. The company has established deep supporting relationships with automakers including SAIC-GM-Wuling, SAIC Motor, Xpeng, Li Auto, and Volkswagen. The first phase of the Deqing base with annual capacity of 800,000 units is fully operational, and the main construction of the second phase with annual capacity of 2.2 million units has been completed and is gradually ramping up production. Businesses such as intelligent controllers, micro and special motors, and automotive electronics provide multi-point support, among which Shanghai Haineng's revenue grew 41.24% year on year, and robot joint motors have achieved small-batch supply and entered testing applications for multiple humanoid robot projects. The company also continues to increase capital in its Vietnamese subsidiary and is advancing the implementation of a high-performance magnetic drive transmission system joint venture project with Bosch.

Unitree Technology announced that its shares will list on the Shanghai Stock Exchange STAR Market on August 19, 2026. The issue price was 150.80 yuan per share, with total post-issuance share capital of 404 million shares. Of these, 30.0877 million shares will be freely tradable in the initial listing period, accounting for 7.44 percent of total share capital. The issue price corresponds to a diluted static price-to-sales ratio of 35.89 times for 2025, higher than the average level of comparable companies. On August 18, humanoid robot concept stocks surged before pulling back. Rongtai shares broke their daily limit, while Wanda Bearing, Fengguang Precision, Jiaocheng Ultrasonic, and Shangwei New Materials rose more than 10 percent, and Xuguang Electronics hit the daily limit. In news, Unitree Technology released a humanoid robot prototype named Superman on August 17. With legs 0.85 meters long, it achieved a standing jump of 2 meters and a top running speed of 12.66 meters per second, both exceeding existing human records. On the industry front, the 2026 World Robot Conference will be held in Beijing E-Town from August 19 to 23, with humanoid robots remaining the biggest highlight. Sinolink Securities believes 2026 is an important milestone for humanoid robots moving from zero to one, and Tesla's first-generation mass-produced products are expected to be released within the year. Morgan Stanley forecasts that China's humanoid robot shipments will reach 50,000 units in 2026, and the market size will reach 15 billion US dollars by 2030. Huaxin Securities and Soochow Securities are both bullish on the humanoid robot sector and suggest focusing on core targets in the Unitree supply chain and Tesla supply chain.

Tesla is embarking on an aggressive spending spree that CEO Elon Musk described as the fastest industrial scale-up in America since World War II. During the second-quarter earnings call, CFO Vaibhav Taneja said 2026 will be a massive CapEx year, as the company reported a record capital expenditure of $5.79 billion for the quarter, a 142 percent year-over-year increase. Total GAAP operating expenses climbed 47 percent year-over-year to $4.35 billion, driven largely by R&D and pre-production ramp costs for new products including the Tesla Semi, Optimus, and Cybercab. Musk said Tesla is prioritizing speed over capital efficiency to accelerate projects and deliver greater long-term value, and he thanked Micron Technology for allocating a significant share of its memory supply to Tesla. The heavy investment follows a strong second quarter in which Tesla posted revenue of $28.24 billion, beating estimates, and delivered 480,126 vehicles.

On July 23, motor concept stocks strengthened mid-session. China Electric Motor rose 9.99%, Huayang Intelligent rose 5.75%, Zhongji Innolight rose 4.64%, Kangping Technology rose 4.21%, and Jinlong Machinery & Electronics rose 2.80%. Wuzhou Medical announced on the evening of July 21 that it plans to acquire 100% equity in Spintrol Electronic Technology (Shanghai) Co., Ltd. through a combination of share issuance and cash payment. Spintrol Technology focuses on the research, development, design, and sales of highly integrated motor control chips. According to Xinhua News Agency, Novelty Robots has made joint modules, lead screws, and ceramic balls the centerpiece of its exhibition, with its self-developed silicon nitride ceramic balls already undergoing application testing at leading robotics companies. A research report from Aijian Securities points out that the global micro and special motor market is expected to reach 53.41 billion US dollars in 2026, while the Chinese market is expected to reach 252.7 billion yuan, with a compound annual growth rate of 12.4% from 2024 to 2028. A research report from China Galaxy Securities notes that the motor industry has broad downstream applications. In the automotive electronics sector, with the rising penetration of new energy vehicles and the evolution of intelligent driving technology, the usage of micro and special motors per vehicle continues to increase, driving significant expansion in demand for automotive micro and special motors.

Mitsubishi Electric and Sony Group have agreed to establish a joint venture called Advanced Vision Solutions, set to begin operations in October, with Mitsubishi holding a 60% stake and Sony owning 40%. The venture will combine Mitsubishi's factory automation capabilities with Sony's image-sensor technology to offer AI-powered factory automation services. The partnership aims to strengthen both companies' positions as manufacturers increasingly adopt AI-driven industrial systems, with Mitsubishi seeking to enhance its competitiveness against rivals like Fanuc, Omron, Yaskawa Electric, Siemens, and Rockwell Automation. For Sony, the deal could help diversify its sensor customer base beyond the maturing smartphone market, leveraging its Intelligent Vision Sensors and Aitrios image-analysis platform. The announcement follows a visit to Japan by Nvidia CEO Jensen Huang, who urged Japanese businesses to seize what he called a generational opportunity in physical AI.

Jiangsu Leili has established a complete layout across the embodied intelligence supply chain, covering core components, motion control assemblies, intelligent control, and motion bases. The company plans to focus this year on deploying dexterous hand components on factory assembly lines. Last year, its revenue exceeded 4 billion yuan for the first time, and its core robot components have entered the supply chains of multiple domestic and international robot body manufacturers, module makers, and dexterous hand enterprises. Revenue from the robotics projects of its holding subsidiary, Dingzhi Technology, surged 687.23 percent year-on-year in 2025. Zhongke Lingxi has developed dexterous hands using three major technical routes: linkage-driven, cable-driven, and direct-drive. All core components are domestically produced, and at equivalent performance, prices are 30 to 50 percent lower than comparable products. The company also noted that the current price of a complete humanoid robot exceeds 1 million yuan, with the dexterous hand accounting for nearly 20 percent of the total cost. High cost is the biggest barrier to large-scale adoption, while insufficient generalization capability is another major challenge. Jiangsu Leili positions itself as a supplier of core hardware components and will not venture into robot body manufacturing for the time being.

Blackstone has agreed to acquire a majority stake in South Korean actuator and motion-control technology company Futronic, valuing the company at approximately 1 trillion won, or $676 million. Blackstone's private equity funds signed a stock purchase agreement to take a controlling stake, though the investment amount was not disclosed. Futronic founder and Chairman Jin-ho Ko will remain as the second-largest shareholder and continue as chairman and CEO, partnering with Blackstone to drive global expansion. Founded in 1993, Futronic supplies high-precision actuators and motion-control solutions to global automotive original equipment manufacturers.

The first half-year report for 2026 on ChiNext has been disclosed by Haozhi Electromechanical. In the first half, the company achieved operating revenue of 1.166 billion yuan, up 65.86 percent year-on-year. Net profit attributable to shareholders of the listed company was 232 million yuan, a surge of 266.57 percent. Deducted non-recurring net profit was 217 million yuan, up 390.85 percent. Benefiting from expanded investment in AI computing infrastructure, consumer electronics upgrades, and high-end PCB capacity expansion, demand for PCB-specific processing equipment was strong. The company's spindle business revenue reached 816 million yuan, up 79.73 percent year-on-year, accounting for nearly 70 percent of main business revenue. Revenue from functional components such as rotary tables and linear motors was 166 million yuan, up 78.25 percent. Revenue from core functional components for robots was 17 million yuan, up 41.35 percent. The company maintained high R&D investment, with first-half R&D expenses of 74.6888 million yuan, accounting for 6.40 percent of operating revenue. As of the end of the period, it held 432 valid patents, including 211 invention patents.

The global EtherCAT market is projected to reach USD 4.11 billion by 2035, growing at a compound annual growth rate of 10.49% from 2026 to 2035, according to a report by SNS Insider. The market was valued at USD 1.52 billion in 2025. Servo drives held the largest device-type share at 27% of revenue in 2025, while the hardware segment dominated components with a 49% share. Automotive manufacturing accounted for 24% of industry vertical revenue, and discrete manufacturing led deployment segments with a 58% share. North America held around 36% of the global market in 2025, while Asia Pacific is expected to grow at the highest CAGR of 12.47% during the forecast period.

On July 7, China's three major stock indices opened lower across the board. The humanoid robot concept was active, with Duoli Technology hitting the daily limit up in intraday trading, and Wuzhou New Spring, Tuopu Group, Leaderdrive, and Siling Intelligent Drive rising in sympathy. In news, the 2026 World Robot Conference will be held in Beijing from August 19 to 23. The PCB concept rebounded amid volatility, with Well-Go, Tianhai Electronics, and Nuode New Materials hitting the daily limit up. Copper-clad laminate leader Kingboard Laminates issued a price increase notice, raising prices for all FR-4 and PP by 15 percent, and CEM-1 and 22F by 10 percent. The rare earth permanent magnet sector strengthened at the open, with Zhongke Sanhuan hitting the daily limit up, as the rare earth market saw mainstream product prices rise driven by supply tightening. The computing power chip concept surged, with Muxi shares rising over 15 percent. Intel raised prices for some consumer-grade Core Ultra processors and Xeon server processors, with high-end Xeon server products seeing increases of 7 to 12 percent. Gaming stocks fluctuated higher, with Xinghui Entertainment rising over 14 percent. A total of 171 online games received publication licenses in June, an increase from the previous month.

Kpower servo has obtained an invention patent from China's National Intellectual Property Administration for a side-out robot servo and its assembly method. The patented technology addresses traditional servo issues such as cantilever force defects, excessive vertical space, and complex maintenance by introducing a dual-bearing full-support output structure that increases service life by more than 60%, a side-output low-profile design that reduces vertical height for space-constrained applications like humanoid robot joints, and a modular layered assembly process that improves mass production efficiency by 40%. The solution is compatible with TTL, UART, and CAN protocols and supports rapid customization based on Kpower's portfolio of over 300 standard servo products. Kpower, a national high-tech enterprise with a 47,000-square-meter manufacturing base and over 500 employees, serves more than 1,000 global customers including DJI, BYD, and Sony, and holds hundreds of patents in precision drive technology.

Weihong Shares disclosed that its subsidiary Ham Electronics has entered the small-batch trial stage and above, with dexterous hand finger joint module customers reaching seventy to eighty. Production capacity is currently being expanded, targeting a monthly output of 80,000 sets by year-end. At the recently held 2026 Tokyo Mechanical Components Exhibition, a team from a global leader in harmonic reducers made a special visit to the booth, and another company, Japan's largest industrial products platform, is formally considering incorporating Ham's dexterous hand modules into its robotics business segment, marking the entry of domestic dexterous hand modules into the mainstream Japanese supply chain. Previously, at the Automate show in Chicago, Ham Electronics' self-developed micro servo motors became a focus of attention in the field of humanoid dexterous hand actuation, with some customers already submitting sample purchase and custom development requests, and product module orders scheduled through August. The company stated that customers are mainly concentrated in the five-finger high-degree-of-freedom dexterous hand field, its micro servo system is defined as an industry-first approach, and the next-generation module form and next-generation axial flux motor have completed finalization.

On July 3, A-share humanoid robot concept stocks surged across the board. Leaderdrive briefly hit the 20 percent daily limit up in afternoon trading, with its share price approaching the 500 yuan mark and reaching a new high. Fengguang Precision hit the 30 percent daily limit up, Wanda Bearing rose over 25 percent, and Kailong High-Tech, Changsheng Bearing, and Reach Machinery all hit the 20 percent daily limit up. On the news front, Elon Musk posted photos on social media of a visit to the Optimus robot production line, signaling that mass production is approaching. The China Securities Regulatory Commission approved Unitree Technology's registration for an IPO on the STAR Market, with plans to raise 4.202 billion yuan. The market believes it could become the first A-share humanoid robot manufacturer, lifting the valuation center of the entire industry chain. The military sector also rose in tandem, with AVIC Aero-Engine and Chengchang Technology hitting their daily limit up. Ingenic Semiconductor rose over 10 percent, with the company stating that computing chip costs continue to rise and that price increases for memory chips are driving gross margin improvement.

Agility Robotics completed its public debut through a merger with SPAC Churchill Capital Corp XI, triggering sharp moves in robotics supply-chain stocks. Vishay Precision Group shares are up 269% year-to-date after booking $1 million in humanoid robotics orders in the first quarter, while Ouster has gained 150% year-to-date on a 49% revenue jump to $48.58 million. Teradyne, which tests AI chips and owns Universal Robots, saw revenue rise 87% to $1.28 billion with 70% now tied to AI, and its stock is up 140% year-to-date. Symbotic, despite a $22.7 billion contracted backlog and Walmart backing, remains down 29% year-to-date and trades below its 200-day moving average.

Component makers tied to the humanoid robotics supply chain rallied sharply on Tuesday as investors sought out specialist suppliers. Sensor makers Ouster, Cognex, and Allegro Microsystems closed up 15.6%, 5.9%, and 4.9% respectively, while edge AI vision processor maker Ambarella surged 28%. Motor makers like Nidec, RBC Bearings, Regal Beloit, and Ametek closed between 1% and 8% higher, with Regal Beloit gaining 8.3% after Kerrisdale Capital disclosed a long position citing the physical AI angle. AI brain maker NVIDIA gained 2.6%, battery maker Enersys rose 4.3%, and power electronics names such as Wolfspeed surged 9%. The moves highlight that component suppliers sell into multiple robot OEMs simultaneously, meaning any broad acceleration in humanoid build rates lifts the entire component tier. However, Reuters reported on June 29 that doubts are creeping into the broader AI trade, with a Bank for International Settlements warning that AI and automation asset valuations may be overextended, a caution directly relevant to high-multiple humanoid component names.

Weihong Shares disclosed its 2026 semi-annual report, with second-quarter revenue and net profit attributable to the parent company rising 19.06% and 48.48% year-on-year respectively, a sharp improvement quarter-on-quarter. In the first half of the year, the company achieved revenue of 286 million yuan, up 10.06% year-on-year, and net profit attributable to the parent company of 6.0243 million yuan, down 79.4% year-on-year, with the profit decline mainly dragged by non-recurring factors. The biggest highlight is that shipments of dexterous hand joint motors and modules surpassed 50,000 units, with products entering the supply chains of leading domestic and international robotics companies, and the new robotics track beginning to contribute substantial revenue. The company's dexterous hand dedicated modules cover diameters from 10 to 25 millimeters, with a product matrix including standalone motors, motors with drivers, and motors with drivers and reducers, featuring low temperature rise and high torque density. Currently, the company has accumulated seventy to eighty cooperative clients, with production line expansion targeting a monthly output of 80,000 units by the end of 2026. Its products have penetrated approximately 40% of global and 80% of China's dexterous hand solutions, entered the supply system of leading robotics company YS, and established cooperation with overseas institutions such as SkildAI and the Stanford Laboratory. In the industrial machine tool business, metal cutting product revenue grew 7.3% year-on-year, and servo system revenue grew 27% year-on-year, with the two tracks forming a synergistic effect of shared technology and mutually reinforcing demand.

The global servo motors and drives market is projected to grow from USD 19.08 billion in 2025 to USD 35.65 billion by 2035, at a compound annual growth rate of 6.42 percent, according to SNS Insider. The digital segment accounted for approximately 55 percent of total market revenue in 2025, while AC drives held the largest share at around 56 percent. Asia Pacific remained the biggest regional market with roughly 38 percent share, and North America was the fastest growing at about 25 percent. Key applications driving growth include robotics, material handling equipment, and semiconductor machinery, fueled by rising industrial automation and smart manufacturing investments.