Servo Motors & Magnets

Tesla Inc. is auditing its suppliers in China as the Elon Musk-led EV maker prepares to ramp up production of its Optimus humanoid robot, according to a report from Chinese media outlet The Paper citing anonymous sources. The audit covers suppliers including Tuopu Group, Sanhua Intelligent Control and Joyson Electronics, which provide actuators, joint modules and other components, and is aimed at compliance and quality checks before production begins. The sources said the companies had already received Optimus orders before the audits started. Tesla did not immediately respond to Benzinga's request for comment. Musk has repeatedly stated a goal of producing 1 million Optimus units annually at scale, and Tesla has ended production of the premium Model S and Model X at its Fremont, California plant to build the Optimus line there instead. Tesla VP of Vehicle Engineering Lars Moravy confirmed the Fremont facility would have at least 40 different production lines for the robot, given its complex design and architecture.

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.