The United States’ move to add foreign power inverters and advanced robotic devices to a covered list is expected to create a more favorable competitive landscape for Korean component makers such as LG Innotek and Samsung Electro-Mechanics, analysts and industry officials said.
Korean component makers poised to gain from FCC restrictions
The U.S. Federal Communications Commission on July 28 added foreign power inverters and advanced robotic devices to its covered list, saying they “pose unacceptable risks to the national security of the U.S.” Under the new rules, new foreign-produced advanced robotic devices and power inverters are “generally prohibited” from receiving FCC authorization for import into the U.S., though producers that receive Conditional Approval from the Department of Defense or the Department of Homeland Security can continue to receive FCC authorizations. The regulation did not directly refer to China but is widely seen as effectively targeting the country, as the U.S. has been seeking to contain China’s growing dominance of global supply chains for advanced robotics.
The move is expected to particularly affect the market for key components such as vision-sensing modules for humanoid robots. “Vision-sensing components, which serve as the eyes of humanoid robots, are essential for collecting information about their surroundings in real time, meaning that not only their performance but also data security and supplier reliability will emerge as important evaluation criteria,” KB Securities analyst Kim Dong-won said. “With the U.S. tightening import restrictions on Chinese robots over national security concerns, demand for alternatives to Chinese vision-sensing components is expected to grow.”
LG Innotek has positioned itself in this area after investing $8.5 million in U.S. robotics startup Figure AI in February 2024 and becoming the exclusive supplier of vision-sensing modules for the company’s Figure 03 humanoid robot. It is also jointly developing a vision-sensing system with Boston Dynamics for use in its Atlas humanoid robot. LG Innotek CEO Moon Hyuk-soo said earlier this year that the company has begun mass producing robotic components and generating noteworthy revenue. Beyond vision sensing, the company is expanding into tactile sensing and robotic hands. Early last month, it formed a strategic partnership with Japan’s TDK to develop vision and tactile sensors for robots.
Samsung Electro-Mechanics is expanding its robotics hardware business by leveraging multilayer ceramic capacitors (MLCCs) and camera modules. A single humanoid robot requires more than 10,000 MLCCs and at least five camera modules, highlighting the large volume of components used in each unit. During its earnings call on July 30, the company said it will actively pursue the mass production of high-resolution and high-pixel sensing modules for humanoid robots, while developing autofocus and long-range 3D sensing modules. “We plan to begin initial mass production and supply of camera modules for humanoid robots within this year,” the company said. “We will also expand cooperation with top-tier customers in developing next-generation products to actively respond to the growing physical artificial intelligence market.”
An industry official said “there had already been moves to avoid using Chinese suppliers in the humanoid robot supply chain even before the FCC regulation,” adding that “companies ultimately need to focus more on strengthening the competitiveness of their products.” Analysts and industry officials said the FCC action is expected to open opportunities for alternative suppliers, including Korean component makers.
