In turn, Leaderdrive's revenue and profit dropped since it is a major supplier of harmonic reducers and servo motors to industrial robot manufacturers.
Robots will be an important vehicle for AI technologies. When AI blends with robotics, it will make up for the shortcomings in the intelligence, ease of use and cost-effectiveness of robots today, effectively increasing their penetration across various industries, CITIC Securities explained.
Citic Securities, a leading brokerage firm in China, said in a research note that the tie-up between the two market leaders could help slash the costs of key components and bolster the supply chain for the robotic industry through economies of scale.
Since humanoid robots require more reducers and motors than conventional industrial robots for enhanced flexibility, demand for core parts like reducers and servo systems is likely to surge, the analysts said.