Key Takeaways
- Advantech expects rapid growth in its robotics-related business, projecting over 5% contribution to total revenue this year.
- The company has secured 20 new robotics projects in 2023, mainly focused on inspection robots and autonomous mobile robots (AMRs).
- Advantech is expanding its U.S. operations, aiming to meet increasing local demand for embedded computing in healthcare, defense, and semiconductors.
Expanding Robotics Ventures
Advantech Co anticipates significant growth in its robotics segment, with President of Embedded Internet of Things, Miller Chang, noting that it surpassed 5% of total revenue last year. The company’s robotics division, established three years ago, specializes in control platforms, AI computing systems, and essential modules for robotics applications, including robotic arms, humanoid robots, and inspection robots.
The demand for Advantech’s products, particularly supporting autonomous mobile robots (AMRs), has surged post-AI adoption. In 2023 alone, the firm has launched 20 new robotics-related projects. Among its clientele are major global firms like Japan’s Fanuc Corp and South Korea’s Hyundai Motor Group. Although humanoid robots attract attention, most of Advantech’s projects remain in proof-of-concept stages and have not yet significantly impacted its revenue.
Chang emphasized the need for robots to have a “brain” for AI decision-making and a “cerebellum” for motion control. Advantech’s robots integrate various modules such as 2D/3D cameras and wireless communication systems. The company is evolving from merely providing core edge computing systems for robotics to offering integrated solutions that include peripheral modules for increased compatibility and validation amid diverse applications.
Additionally, Advantech is venturing into drone technology by developing compact, low-power embedded modules. In a strategic move, the company finalized a warehouse construction at its new Southern California site in December, poised to become the U.S. headquarters by June. This facility will focus on high-performance edge computing applications across sectors, including semiconductors and medical devices.
Existing operations in Milpitas, California, will concentrate on general industrial and embedded computing assembly. U.S. clients have increasingly requested local assembly to adhere to “Made in USA” standards, particularly important in sectors like healthcare and defense.
Furthermore, Advantech plans to expand U.S. production for industrial servers, addressing the challenges of shipping large systems from Taiwan. The U.S. market is driven by growth in healthcare, industrial automation, and semiconductors, particularly as reshoring efforts intensify. Additionally, professional audio-video equipment for conferencing has shown rapid growth in North America, solidifying Advantech’s position in this sector.
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