(Yicai) Sept. 21 -- European companies do not want to miss out on opportunities brought by the robotics boom in China, even though Europe is not the center of this round of artificial intelligence and humanoid robot innovation, according to the chief executives of two European firms with local operations.

Freudenberg Group's new strategy is to concentrate its humanoid robot research and development in China to keep pace with the country's development speed, CEO Claus Möhlenkamp told Yicai during the opening ceremony of the Freudenberg Co-Creation Center in Zhangjiang AI Robot Valley in Shanghai on Sept. 17. The German tech firm will produce robot-related products in China and export them to the rest of the world, he pointed out.

The performance and service life of basic components, including sealing, lubrication, and vibration control, are directly tied to robots' long-term reliability and performance limits, Möhlenkamp noted. Freudenberg's new center, set up with local partners, is committed to overcoming bottlenecks in the performance and reliability of high-load joints, blocked upstream and downstream collaboration mechanisms in the supply chain, and other major challenges, he added.

Because the entire ecosystem is developing rapidly, some links have lagged, especially in the scalability, reliability, and stability of components and technology, he stressed. This requires Freudenberg to work with its partners in China to define industry standards for future large-scale application and promotion of the technology, which is one reason behind building the Freudenberg Co-Creation Center, he noted.

In addition, NXP Semiconductors put its Shanghai robot innovation center into operation on Sept. 18. The Dutch firm sees the center as a key part of its global robotics strategy, aiming to promote innovation of its robot system and the large-scale implementation of its trusted physical AI achievements in the Chinese market.

NXP CEO Rafael Sotomayor said to Yicai that he visited seven Chinese robotics companies and five carmakers developing robots within a week to learn the urgent needs of the local robotics supply chain. Robotics firms have no bottlenecks in parts and components for so-called perfect products, so NXP needs to work with customers to define next-generation products, he noted.

Three forces driving humanoid robot deployment in China: emerging robotics companies, auto firms, and traditional industrial automation companies, Sotomayor pointed out. Because of their different backgrounds, they have different supply chain needs, he said, adding that the Chinese robot ecosystem is much larger than that in other countries in terms of the number of robot companies.

Freudenberg and NXP Semiconductors want to become an indispensable part of the development of China's robotics industry to avoid falling into a passive position in the new industry wave.

China will hopefully become Freudenberg's largest market, Möhlenkamp said. He brought all members of Freudenberg’s management committee to Shanghai to attend the opening ceremony of its new Co-Creation Center. During the three days running up to the ceremony, he said he met with a total of 160 global executives and Chinese management representatives, online and offline, to discuss the future of their business, re-integrate the enterprise organization, and put forward a new vision for local business operations.

China is Freudenberg's third-largest market, but its growth in the country will be faster than in other regions, Möhlenkamp said. Because its robotics industry is developing so quickly, the company must keep investing in the country and stay here, he stressed.

Freudenberg's new narrative is "In China, For China" and "In China, For the World," he noted, adding that the company will put research and development in the country, target the local market, and place the entire value chain and production in China.

The world is undergoing tremendous changes, so NXP is adjusting based on new trends, Sotomayor said. China is leading in physical AI, he pointed out, adding that he hopes to work with winners in the country to achieve a shared victory.

Humanoid robots are not a flash in the pan but a new market with real demand and prospects, Sotomayor said. Investment returns may be enormous, so NXP is also investing heavily in physical AI, he stressed.

Humanoid robots will see significant development with some ups and downs, according to Möhlenkamp. However, in the long run, they will definitely become a big industry, and the competitiveness, labor supplementation, and productivity gains they bring will be compelling advantages, he added.

Editors: Tang Shihua, Martin Kadiev