From Cables to Chips: Ubtech Robotics Builds a Self-Sufficient Humanoid Supply Chain

Ubtech secures custom cables from Far East Smart Energy and launches chip JV for edge AI, but shares drop 16.4% weekly as fiscal losses persist.

Ubtech Robotics is taking an uncommon two-pronged approach to vertical integration, securing everything from the wiring inside its humanoid robots to the semiconductors that power their brains. The company has inked a supply deal for custom cables with Far East Smart Energy’s subsidiary even as it launches a 100 million yuan ($13.8 million) joint venture to develop proprietary edge computing chips. Yet for all the strategic ambition, the stock has been heading in the opposite direction.

Shares fell 5.6 percent on Friday to €11.41, capping a weekly decline of 16.4 percent. That puts the stock 32.7 percent below its 52-week high of €16.95 and beneath the 50-day moving average of €11.73. The relative strength index of 44.3 hints at mild bearish momentum. Year-to-date, the equity has lost 21.3 percent of its value.

The chip venture, named Xixuan Chuangzhi Technology and based in Wuxi, brings together Ubtech with graphics processor developer MetaX and component maker Zhejiang Fenglong Electric. Its mission is to design so-called edge AI chips tailored for embodied intelligence — processors that can handle complex algorithms directly inside the robot rather than relying on cloud computing. Lower latency, faster on-device decision-making, and reduced external dependencies are the stated goals. The business scope covers IC design, robotics research, and software development for AI algorithms. If successful, the initiative could slash long-term component costs and tighten Ubtech’s grip on the entire technology stack.

Simultaneously, the company is shoring up the physical backbone of its humanoid line. Far East Smart Energy announced on May 30 that its subsidiary Far East Electric will supply all custom power and signal cables for the Walker C1 model. The supplier’s ROBOT-ER series cables, built for multi-joint dynamics and compact integration, range from 14 to 34 AWG and are designed to withstand over one million cycles under 1,000 g/mm² load, with bending and torsional lifespans exceeding three million cycles. The cables will be showcased when the Walker C1 appears as the official “silicon-based ambassador” at the China International Supply Chain Expo starting June 22 — an event that draws exhibitors from 85 countries, 36.5 percent of them foreign.

These supply-chain moves do not come in a vacuum. Ubtech’s fiscal 2025 results, released earlier this year, showed the humanoid division has become the largest revenue driver. Sales of full-size humanoid robots surged 23-fold to 820.6 million yuan, powered by 1,079 units sold, mostly from the industrial-grade Walker S series. Total revenue climbed 53 percent to 2.01 billion yuan. Gross margin improved by nine percentage points to 37.7 percent, and the net loss narrowed by 31.9 percent to 790 million yuan. However, operating cash burn remained steep at 784.1 million yuan, leaving the company with roughly 4.9 billion yuan in cash at year-end.

The combination of a dedicated chip unit and a dedicated cable supplier signals that Ubtech is preparing for volume production, not just prototypes. But investors are waiting for customer orders rather than component specifications. The upcoming expo, where Ubtech will deploy a “robot volunteer matrix” across the entire venue, provides a platform for concrete commercial conversations. Whether that visibility translates into deals — and eventually into a stock recovery — will be the real test of the vertical integration strategy.