If you ask what is the hottest industry this year?

It's not a new energy vehicle.

It's not a large AI model.

But robots.

Over the past six months, from Tesla's continuous updates on Optimus, to NVIDIA and OpenAI's deployment of embodied intelligence, and to the frequent buzz generated by domestic Yushu Technology, robots have become a focal point of attention for both the capital market and the manufacturing industry.

Many people believe that this is the best era for the robotics industry.

However, after Huazhi International led entrepreneurs to visit the headquarters of KUKA in Germany at the end of June, we discovered an interesting phenomenon.

Here, no one discusses whether robots will replace humans, nor is anyone obsessed with the concept of humanoid robots.

What they discussed was how robots could make every factory more efficient, precise, and flexible.

This is also why, for decades, whenever industrial robots are mentioned, whether in the automotive, electronics, medical, or logistics industries, one name cannot be ignored - KUKA.

In 2016, Midea invested 29.2 billion yuan to complete the acquisition of Kuka. The acquisition sparked continuous controversy at the time. Now, ten years later, the value of this transaction is being increasingly re-evaluated by more and more people.

In the era of AI, what truly thrives is not the robot, but the manufacturing capability

Many people first got to know Kuka because of Tesla.

In the Tesla Gigafactory, numerous robotic arms are operating at high speed, many of which are sourced from KUKA.

In fact, in the fields of global automobile manufacturing, electronics manufacturing, aerospace, and more, KUKA robots have long become crucial underlying equipment for automated production.

During the visit and exchange, the person in charge of KUKA introduced that the global industrial robot market demands about 300,000 robots annually, with the Chinese market accounting for about 55% of the global demand. KUKA's annual global production capacity is about 80,000 robots, with its factories in Shanghai and Shunde, China, contributing about 50,000 units of production capacity.

What truly impresses people is not the speed at which the robotic arm wields, but the system's capabilities behind it.

In the exhibition hall of the headquarters, what we see is not just robot products, but a complete intelligent manufacturing system.

Take digital twin technology as an example. During the live demonstration, two robots were linked in real-time with the digital model, completing debugging in virtual space and then synchronizing to the real equipment for execution. Production processes that used to require repeated trial and error can now be verified in the digital world first, significantly reducing debugging costs and improving production efficiency.

There is also a visual recognition system.

Traditional robots must work at fixed positions, but with the addition of a vision system, robots can automatically recognize the position and orientation of workpieces. Even if parts are offset, they can still complete grasping and assembly autonomously, making them more adaptable to today's increasingly common small-batch, multi-variety production.

Many companies are discussing AI, but KUKA is more concerned about how to truly turn AI into productivity.

For the manufacturing industry, this is more important than any concept.

02. Why has a century-old German company always been at the forefront of the industry?

Many people don't know that KUKA is not a company that was born to make robots.

It was founded in 1898, initially producing acetylene lighting equipment, and later expanding into welding equipment and automated production lines. It was not until 1973 that the company launched its first industrial robot, officially ushering in the era of robotics.

It was founded in 1898, initially producing acetylene lighting equipment, and later expanding into welding equipment and automated production lines. It was not until 1973 that the company launched its first industrial robot, officially ushering in the era of robotics.

What truly keeps KUKA competitive is not a single star product, but the continuous accumulation of underlying technologies.

In the laser laboratory, we learned that the real difficulty of laser welding lies not in the laser equipment itself, but in how robots can precisely control speed, trajectory, and angle on complex surfaces to achieve stable and consistent welding quality. It is precisely because of the long-term accumulation of motion control and process integration capabilities that KUKA has been able to establish technical barriers in the field of high-end manufacturing.

Another impressive aspect is medical robots.

The on-site person in charge introduced the concept of "Robot Team": multiple robots collaborate to complete medical imaging scanning, patient positioning, and treatment support. One robot is responsible for high-speed rotation to obtain three-dimensional images, while another is responsible for precise patient positioning to provide navigation for particle therapy. At the same time, the human-robot collaboration robot LBR Med can also assist in orthopedic surgery, improving precision and reducing the risk of tissue damage.

Robots are no longer just mechanical arms in factories, but have formed complete solutions in various fields such as manufacturing, logistics, and healthcare.

What lies behind this is a capability, not the sale of equipment, but the ability to solve problems.

For today's manufacturing enterprises, this mindset is particularly worth learning from.

The acquisition made ten years ago is now becoming increasingly valuable

In 2016, when Midea announced its acquisition of Kuka, the biggest question from the outside world was: Why would a Chinese home appliance company spend a significant amount of money to buy a German robotics company?

Ten years later, the answer is becoming clearer.

Just a few days after we concluded our visit to Germany, a recent news once again validated the strategic value of this acquisition.

On July 7, 2026, KUKA, a subsidiary of Midea Group, officially signed a group-level strategic cooperation agreement with Yingke Medical and Yingke Regeneration. The two parties will collaborate comprehensively in areas such as industrial robots, logistics automation, and production line intelligence. This marks a formal upgrade of their cooperation from past project-based collaborations to group-level strategic synergy.

According to the agreement, the scale of this cooperation exceeds 300 million yuan, encompassing 1,500 sets of industrial robots, 500 sets of mobile and embodied intelligent robots, as well as 50 sets of automated three-dimensional warehouses and supporting full-chain automation solutions. In the future, these technologies will cover production links such as automatic assembly, intelligent detection, and smart logistics, and will be combined with technologies such as AI visual recognition and adaptive grasping to help enterprises solve the flexible manufacturing challenges brought by small batch and multi-variety production.

If we could turn back the clock to ten years ago, such a collaboration would be almost unimaginable.

At that time, many people interpreted Midea's acquisition of Kuka as a cross-border merger and acquisition; however, looking back today, what this acquisition truly bought was not a robotics company, but a capability system tailored for the future of manufacturing.

During our visit to the headquarters in Germany, we also deeply felt this point.

KUKA has evolved beyond being merely a company that sells robotic arms. It has become a platform-based enterprise capable of providing comprehensive automation solutions encompassing robots, digital twins, intelligent logistics, visual recognition, laser welding, human-robot collaboration, and more.

During the exchange at the meeting, it was also mentioned that in the past, it was more common for foreign-funded enterprises to acquire Chinese enterprises. However, nowadays, Chinese enterprises have begun to actively acquire international industrial brands with a century-old history, which in itself is a microcosm of changes in the global industrial landscape.

Looking back today, what Midea truly needs has never been a robot, but rather world-leading automation technology, R&D systems, and intelligent manufacturing capabilities.

This is also why the once controversial acquisition ten years ago is now continuously releasing new value. It not only helped Midea complete its own manufacturing upgrade, but also made Kuka an important partner for the intelligent transformation of more and more Chinese manufacturing enterprises.

At the end of June this year, Huazhi International organized a 11-day study trip for entrepreneurs to Germany and France to visit benchmark enterprises. Visiting world-class enterprises such as Kuka and Schneider Electric is not just about seeing advanced equipment, but more importantly, it is about understanding the development direction and underlying logic of the global manufacturing industry. (Push notification link >> 11 Days in Germany and France: 30 Chinese Entrepreneurs' Soul-Searching)

True study tours are not about merely visiting a factory, but about unlocking a new level of understanding; similarly, true globalization is not about simply stepping out, but about learning how to compete on the same level as world-class enterprises.