UBTech Robotics said it planned to expand its assembly of humanoid robots 10-fold next year to as many as 5,000 units and double that to 10,000 in 2027, as the scale economics of China’s advanced manufacturing prowess shaves a fifth off production costs every year.

The Shenzhen-based company was on track to deliver 500 humanoid robots for industrial use by the end of this year, scaling up since delivering the first 10 droids last year, UBTech’s chief branding officer Michael Tam said during an interview with the Post on Wednesday.

“Thanks to the rapid shift of China’s supply chain towards humanoid robotics and our close collaboration with upstream suppliers, we expect manufacturing cost to decline 20 to 30 per cent annually,” Tam said, adding that customer demand “far exceeds” current production capability. “By roughly 2027 to 2030, we believe the unit [production] cost can fall to under US$20,000.”

The maker of the Walker S2 humanoid, with the world’s first self-replacing battery capability, underscores how China’s robotic companies are reaching a watershed moment, helped by falling production costs.

More than 90 per cent of the components used in humanoid robots were made in China, with the exception of certain computing chips, Tam said. Even the quality of locally made high-precision parts such as motor systems, ball screws and spiral bevel gears was quickly improving and catching up with global peers, due to the strength of China’s electric-vehicle supply chain, he said.

UBTech currently operates two humanoid robotics factories – one in Shenzhen, the manufacturing hub of southern China, and another in Liuzhou in southwestern China’s Guangxi province.