Accelerates

May 25 (Asia Today) — Hyundai Motor Group is accelerating plans to mass-produce humanoid robot Atlas and deploy it at manufacturing sites, creating new software-defined factory and robotics parts organizations as it pushes to build AI-driven future factories.

Industry officials say the leading candidate for Atlas mass production is the company’s Hyundai Motor Group Metaplant America, or HMGMA, in the U.S. state of Georgia.

Analysts say Hyundai’s strategy goes beyond simply introducing robots into factories and instead aims to simultaneously establish AI-based manufacturing systems and a dedicated robotics supply chain.

According to industry sources Sunday, Hyundai Motor Group recently created a new “Software Defined Factory,” or SDF, division and appointed Alpesh Patel to lead the effort.

SDF refers to a next-generation manufacturing system in which AI integrates and controls factory-wide production, quality management and logistics through unified software systems.

The goal is not only factory automation but also real-time analysis of manufacturing data and optimization of quality control and logistics operations.

Patel, formerly with consulting firm McKinsey & Company, joined Hyundai Motor Group in 2023 and previously served as chief innovation officer at the Hyundai Motor Group Innovation Center Singapore, or HMGICS, where he led development of digital manufacturing systems.

Industry observers said Hyundai’s decision to move Patel into a broader group leadership role reflects plans to expand smart manufacturing systems validated in Singapore across global production sites.

Patel is also expected to oversee digital twin operations, production data management and AI-driven factory systems while coordinating future deployment of Atlas robots in manufacturing facilities.

Analysts say humanoid robots require integrated coordination among production equipment, logistics systems and worker movement within a unified software environment to function effectively in factories.

Hyundai Motor Group is also expanding its robotics supply chain infrastructure.

The company recently established a dedicated Robotics Parts Procurement Office and appointed So Hyun-sung to lead the division.

The office will oversee sourcing and cost competitiveness for core humanoid robot components such as actuators, robotic grippers and head modules as Boston Dynamics moves toward mass production.

Boston Dynamics reportedly requested that key Atlas components be mass-produced by Hyundai Mobis.

Hyundai Motor Group plans to build a mass-production system centered on Hyundai Mobis while linking it to global procurement networks to secure supply stability and pricing competitiveness.

Industry officials have also discussed the possibility of constructing a U.S.-based actuator production facility capable of producing about 350,000 units annually.

The company has additionally reorganized teams handling global trade risks amid rapidly changing international trade conditions.

Hyundai recently established a Global Trade Strategy Office under its Global Policy Office to oversee diplomacy, trade and tariff issues, appointing Jang Jae-ryang to lead the division.

Industry analysts said the move is intended to address growing risks involving global manufacturing and supply chains.

Georgia has emerged as the leading candidate for Atlas mass production over Massachusetts, where Boston Dynamics is headquartered, according to industry sources.

Officials reportedly concluded Georgia would allow newly produced robots to be immediately deployed and tested at HMGMA production facilities.

HMGMA already operates as a smart factory combining about 1,700 workers and more than 1,000 robots.

Industry officials said the facility offers advantages for repeated testing, machine learning and operational improvement of Atlas robots in real manufacturing environments.

The site is also viewed as strategically favorable for vertically integrating component procurement, robot production and deployment logistics.

Hyundai Motor Group plans to establish annual Atlas production capacity of 30,000 units by 2028 and gradually deploy more than 25,000 of those robots across Hyundai and Kia production facilities.

Initially, Atlas robots are expected to handle parts sequencing operations at the Georgia factory before expanding into assembly work.

Hyundai also plans to extend SDF technologies to facilities including its Pune plant in India and a dedicated electric vehicle factory in Ulsan, South Korea.

An industry official said Hyundai Motor Group is pursuing more than a traditional automated factory model.

“What Hyundai is building is a future manufacturing system combining AI and humanoid robots,” the official said. “The creation of SDF organizations, robotics supply chains and production hubs is essentially preparation for the era of mass-produced robots.”

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260526010007193

ASML occupies a critical position in the global semiconductor supply chain as the sole producer of extreme ultraviolet lithography systems. These machines are essential for manufacturing the most advanced chips used in artificial intelligence applications. As demand for AI computing has surged, driven by data centre expansion and high performance processing needs, the semiconductor industry has entered a new investment cycle focused on capacity growth.

Strong earnings and upgraded forecast

ASML reported first quarter earnings that exceeded expectations and raised its 2026 revenue outlook to between 36 billion and 40 billion euros. This revision signals stronger than anticipated order inflows and reinforces the scale of demand emerging from the AI sector.

The company’s performance reflects a broader trend in which chip demand is outpacing supply. According to CEO Christophe Fouquet, customers are accelerating expansion plans well beyond the near term, indicating confidence in sustained AI driven growth.

ASML as a strategic enabler of AI growth

Investors increasingly view ASML as a foundational player in the AI ecosystem rather than a conventional manufacturer. Its tools are used by leading chipmakers such as TSMC, which produces advanced processors for firms like Nvidia and Apple.

This positioning places ASML at the upstream end of the value chain. Instead of competing in chip design or production, it supplies the essential infrastructure that enables both. As a result, its growth is tied to the entire semiconductor sector rather than any single company.

Supply constraints and industrial limits

Despite strong demand, structural constraints remain significant. Semiconductor fabrication plants require years to build and involve complex global supply chains. ASML itself faces production bottlenecks due to the precision and cost of its machines, which can reach hundreds of millions of dollars per unit.

Even with plans to increase shipments of its leading systems in 2026 and 2027, capacity expansion is gradual. This creates a persistent imbalance where demand continues to exceed supply, reinforcing pricing power across the industry.

Geopolitical and regulatory risks

A key uncertainty for ASML lies in export controls, particularly regarding sales to China. Proposed restrictions in the United States, including the MATCH Act, could limit the company’s ability to supply Chinese customers. Currently, China represents a significant portion of ASML’s revenue.

However, the global shortage of advanced chips may mitigate this risk. Reduced access to one market could be offset by demand from others, especially as countries and companies compete to secure semiconductor supply chains.

Market response and valuation concerns

ASML’s share price has risen sharply, reflecting investor optimism around AI driven growth. The company is often described as a “picks and shovels” investment, benefiting from the broader expansion of the industry regardless of which firms dominate end products.

At the same time, analysts caution that valuations are elevated. The current pricing assumes sustained high growth, leaving limited room for setbacks related to supply constraints or regulatory changes.

Analysis

The upgrade in ASML’s forecast highlights a structural shift rather than a temporary cycle. AI is not only increasing demand for chips but also reshaping the entire semiconductor value chain. ASML’s monopoly in EUV technology gives it a unique strategic advantage, effectively making it a gatekeeper for next generation chip production.

However, this dominance also exposes the company to geopolitical pressures and operational challenges. The interplay between technological leadership, supply limitations, and regulatory dynamics will determine whether current growth trajectories can be maintained.

ASML’s stronger outlook underscores the depth of the AI driven semiconductor boom. While demand momentum remains robust, the company operates within a constrained and politically sensitive environment. Its future performance will depend on balancing rapid industry expansion with the physical and geopolitical limits shaping the global chip ecosystem.

With information from Reuters.