[Featured Stock] RS Auto Gains Attention Amid Trump-Induced Manufacturing Revival... Jensen Huang and Musk Obsessed with Robots

In recent years, as artificial intelligence (AI) technology has rapidly advanced, the focus has shifted toward the robotics industry. There is a growing outlook that the robotics industry could quickly become a mainstream platform for AI development. Jensen Huang, CEO of NVIDIA, forecasted progress in technological innovation combining robots and AI at the ‘NVIDIA AI Summit Japan’ held on the 13th in Tokyo, Japan, stating, "AI innovation will spread from digital to physical."

He said, "In the next five years, significant progress will be seen in the evolution of humanoid robots," and added, "There is no dominant giant company in AI yet, and this is a new era where we can reset."

On the 6th, NVIDIA showcased various simulation tools available to robot developers at the 2024 Conference on Robot Learning (CoRL 2024) held in Munich, Germany.

Boston Dynamics’ quadruped robot ‘Spot’ was deployed for security during the inauguration of Donald Trump as U.S. President. Elon Musk, CEO of Tesla and a key figure in Trump’s second administration, is aggressively pushing forward the humanoid robot business. Musk predicted that by 2040, humanoid robots based on AI that think and act like humans will number 10 billion, surpassing the human population.

Musk has planned to deploy over 1,000 robots in Tesla factories starting next year. According to market research firm Benchmark International, the global robotics market size is expected to surge from $46 billion last year to $169.8 billion by 2032. President-elect Trump’s “America First” policy, which includes a $1.5 trillion (approximately 2,110 trillion KRW) infrastructure investment, is also expected to act as a catalyst for market growth. Strong measures such as appointing a ‘Manufacturing Ambassador’ to promote domestic manufacturing in the U.S. have also been announced.

As of 9:30 a.m. on the 15th, RS Automation was trading at 10,910 KRW, up 570 KRW (5.51%) from the previous trading day.

RS Automation, the top exporter of robot motion control devices, is making a full-scale entry into the U.S. market. Expecting strong demand in the U.S., the company plans to aggressively pursue sales activities based on the smart manufacturing line operated by its local subsidiary in Las Vegas. It will strengthen cooperation with its partner, Rockwell Automation, the largest automation supplier in the U.S.

Earlier this year, Rockwell Automation formed a partnership with NVIDIA to accelerate the construction of next-generation industrial architecture. NVIDIA became an official member of the Rockwell Automation Partner Network. Through this collaboration, Rockwell Automation and NVIDIA plan to build the ‘factory of the future’ to make it easier for various industrial automation companies to digitize their production processes. Rockwell Automation, a specialist in industrial automation and digital transformation, has a market capitalization of 45 trillion KRW.

RS Automation has maintained global partnerships with companies such as Rockwell Automation, global robotics firm Schneider Electric, and Japan’s largest robot manufacturer, Yaskawa. Schneider Electric has also partnered with NVIDIA to optimize data center infrastructure and establish digital twin technology.

RS Automation’s ‘SMC,’ which it exports to Rockwell Automation, is a type of driver component that receives commands from a robot motion controller and controls the drive motor. It is an essential product used in various social infrastructures, bridges, elevators, and smart manufacturing lines. RS Automation’s SMC currently holds the number one market share in the U.S., and its sales in the second half of this year are expected to increase by about 30% compared to the second half of last year.

In 2022, RS Automation signed a 63 billion KRW, five-year supply contract for SMC with Rockwell Automation. The company is in the final stages of developing next-generation SMC products equipped with cybersecurity features. The launch is planned to coincide with the contract’s expiration in 2027. RS Automation aims to further solidify its dominant position in the U.S. market.

Earlier, at the end of last year, RS Automation successfully developed a miniature precision capacitive encoder in-house. The commercialization of this miniature capacitive encoder is the first in Korea following optical encoders and the second in the world after Israel. The company explained that this achievement is significant as it opens the path for domestic production of miniature core components applicable to collaborative robots, humanoid robots, mobile robots, medical robots, drones, and guided weapons. Compared to typical encoders, it consumes only about 10% of the power, making it suitable for premium mobile robots and miniature drones where low power consumption is essential.