[Source/Observation Network by Ruan Jiaqi]

In the field of machinery and factory automation, where Japanese manufacturers have long held an advantage, Chinese domestic enterprises' technological leap is breaking through the "moat" of technical barriers that Japanese companies once took pride in. The loss of market share in China has become an urgent reality, forcing Japanese companies to seek new ways to break the deadlock.

According to a report by Nikkei Asia on the 30th, as local Chinese competitors rapidly rise, Yaskawa Electric Corporation (YASKAWA), one of the four major global industrial robot manufacturers, plans to turn to the US market for new growth opportunities. This "century-old company" intends to prepare for development in the United States and may invest a large amount of capital in new factory construction and other projects.

The report stated that in the US market, this Japanese老牌 enterprise founded in 1915 will face off with the other three industry giants ABB, Fanuc (FANUC), and Kuka (KUKA).

Among them, the Japanese-owned Fanuc,凭借 its advantages in robots for automobile assembly plants, already occupies half of the US market. Daiwa Securities analysts believe that Yaskawa Electric may find opportunities in "non-automotive sectors such as healthcare and food."

According to Japanese media reports, Yaskawa Electric's sales in the Americas accounted for 24% of the previous fiscal year's total. However, using the US as a growth engine means the company will directly face the challenges of Trump's tariff policies. President Masahiro Ogawa also admitted that tariffs are the company's "biggest concern for the 2025 fiscal year."

The report said that Yaskawa Electric expects revenue to grow by 2% this fiscal year to 550 billion yen, with operating profit increasing by 20% to 60 billion yen. However, the earnings guidance does not include the impact of US tariffs, raising concerns about possible downward revisions.

The above analyst said that tariffs are expected to impact Yaskawa Electric's operating profit by 7 to 8 billion yen but can be mitigated by price adjustments.

Yaskawa Electric's AI robot "MOTOMAN NEXT" Nikkei Chinese Website

According to Nikkei Shimbun, Yaskawa Electric entered the Chinese market in the 1990s. Its three main products are: variable frequency drives used for power control, AC servo motors used for mechanical control, and welding robots used for automobiles, among others.

With the increase in electricity consumption in China, Yaskawa Electric began focusing on selling variable frequency drives for air conditioners and elevators. The AC servo motors promoting factory automation (FA) and robots also developed into major profit-making businesses.

"But now, Yaskawa Electric stands at a fork in the road," the Japanese media reported. As Chinese domestic rivals with completely overlapping product lines rise, Yaskawa Electric is struggling in the Chinese market, with its products being quickly replaced by domestic brands.

According to Nikkei Asia, Chinese domestic competitors have now "turned the tide" and lead in the markets for variable frequency drives and servo motors.

Morgan Stanley Securities analysis shows that in servo motors, the market share of Chinese enterprises has soared from 4% in January-March 2017 to 30% in April-June 2024.

The Japanese media also mentioned that apart from technological breakthroughs, Chinese enterprises leverage their local production to form pricing advantages and take the initiative in cost and delivery cycles through deepening local cooperation.

Senior Morgan analyst Yuji Sano further pointed out, "Chinese enterprises' technical strength is continuously improving, not only in the low-end market but also enhancing their presence in the mid-range market."

Last month, Yaskawa Electric released its latest quarterly financial report, showing a 10% year-on-year decline in revenue in the Chinese region.

At the earnings briefing, President Masahiro Ogawa frankly admitted the grim situation, stating that "domestic enterprises are rising, and Chinese-made products are being widely adopted. It will be difficult for us to pursue sales volume in the Chinese market in the future."

At the end of last year, the Japan Enterprise (China) Research Institute published an article analyzing the reasons why Yaskawa Electric lost its competitive edge in China.

The article mentioned that Yaskawa Electric's Σ-7 servo motor was once considered the "pinnacle" of industrial automation and had a dominant technological advantage in the Chinese market. However, in recent years, Chinese enterprises have launched the SV660 series of servo motors, achieving support for complex multi-axis control scenarios in industrial automation. Although slightly less precise than the Σ-7 in performance, they can meet almost all industrial needs.

The key point is that the SV660 has significant advantages in price, delivery cycle, and service. The high cost and long delivery time of the Σ-7 deter many customers with limited budgets and a focus on efficiency, while the arrival of SV660 has filled this market gap. Consequently, Yaskawa Electric's original market share has gradually been replaced.

The article also pointed out that from core components to complete machine products, China's industrial automation is emerging across the entire industrial chain. In the future, Japanese companies will face competition not only in the Chinese market but also globally. According to sources, some Vietnamese automotive parts factories have already begun using servo motors produced by Chinese enterprises.

This article is an exclusive contribution by the Observation Network and cannot be reprinted without permission.

Original: https://www.toutiao.com/article/7510120116999258659/

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