China’s UBTech Robotics rallies on Foxconn partnership

Investing.com– Shares of Ubtech Robotics Corp Ltd (HK:) rose sharply on Wednesday after the firm and electronics giant Hon Hai Precision Industry (TW:), also known as Foxconn (SS:), said they will collaborate on the development of humanoid robots.

Ubtech surged 10.5% to HK$52.60 in Hong Kong trade, vastly outpacing a 0.1% rise in the benchmark index. 

The company and Foxconn said they will form a long-term partnership with the goal of developing humanoid robots for the manufacturing sector, Chinese media reported.

Ubtech specializes in humanoid robots, and was publicly listed in 2023 with investments from Tencent Holdings Ltd (HK:) and ICBC. The partnership with Foxconn will likely leverage the company’s expertise in robotics with the Taiwanese giant’s electronics manufacturing capabilities.

Foxconn shares fell 1.7% in Taiwan trade on Wednesday. The company is the world’s biggest contract electronics manufacturer, and is a key supplier for tech giants such as Apple Inc (NASDAQ:) and NVIDIA Corporation (NASDAQ:).

News of the partnership comes as Foxconn attempts to diversify into a slew of different electronics sectors. The company launched a foray into the heavily crowded electric vehicle market over the past year.

Humanoid robots have also come into increased focus over the past year, especially after EV maker Tesla Inc (NASDAQ:) revealed its Optimus prototype. Particular focus is on merging artificial intelligence and robotics.