competes with all of Asia. And he is losing

The race to develop models of artificial intelligence (AI) that the US and China maintain in their struggle for world supremacy is entering a new phase. And the physical applications of AI are gradually gaining prominence. By “physical applications” we mean the integration of one or more AI models into a mechanical device, such as a humanoid robot or a machine for industrial automation applications.

The interesting thing is that the rules that will determine which countries will lead this emerging industry are different from those that currently govern competition in the field of AI models and software applications. And they are so for a reason: the robustness of the supply chain plays a fundamental role when the product stops being immaterial and takes the form of a cutting-edge hardware solution. In this scenario, Taiwan, Japan, South Korea, and, above all, China, have a great advantage over the US and Europe.

China is committed to the strategy with which it has managed to dominate the electric car

Before continuing to investigate the industry specialized in the development of physical applications of AI, we are interested in diverting our gaze for a moment to the semiconductor market. At the moment in Asia they are manufactured 90% of memory chips, 75% of microprocessors and 80% of silicon wafers. These figures are overwhelming. So much so, in fact, that in the medium term they remain absolutely out of reach of the West.

The electric car market also clearly illustrates the strength of Asia in general and China in particular. The country led by Xi Jinping leads it with a global market share of 62%. On the other hand, the South Korean companies LG Energy Solution, SK On and Samsung SDI accumulate a joint global quota in the market for batteries for electric cars of 16%. And the Japanese Toyota produces more than one million hybrid vehicles per year. Japan’s position is peculiar because leads the production of hybrid carsbut it is lagging behind in the pure electric car market.

Whatever China’s strength in the electric car market and Asia’s leadership in the integrated circuit manufacturing industry have been built on a very robust supply chain and overwhelming production capacity. Jixun Foo, the senior director at venture capital firm Granite Asia, which specializes in technology investments in Asia, ensures that “AI is not just about models or software applications (…) If we look towards Asia our advantage is in the supply chain, hardware and engineering capabilities.”

That’s the key. China has opted for the same strategy in the physical applications of AI industry that has led it to lead the electric car market. Its meticulous control of the entire supply chain, its high manufacturing capacity and its cost optimization in all probability They are giving you a very important advantage in the industry of humanoid robots and machines for industrial automation applications. And not only in its struggle with the United States; It will be very difficult for Europe to compete in a market in which Chinese companies such as UBTech Robotics, Agibot or Unitree Robotics are already fully established.

Image | UBTech Robotics

More information | SCMP

In Xataka | The US is doing everything to drown China. China has already achieved that 35% of its chip machines are its own