The question of whether consumers would embrace humanoid robots at prices comparable to smartphones, and potentially in multiples to handle household chores, professional tasks, and even jobs, is no longer a hypothetical. Zhou Yong, the 40-year-old founder and chief technology officer of LinkerBot, a prominent Chinese manufacturer of dexterous humanoid hands, is actively making this proposition a reality. LinkerBot’s advanced robotic hands, featuring five fingers and at least 11 joints, are currently available in China for as little as $600. These hands possess remarkable capabilities, demonstrated through their ability to play the piano, thread needles, tighten screws, and assemble intricate electronics. Zhou projects that within three to five years, the cost of these hands will further decrease to approximately $200, leading to a future where, on average, "everyone will own 10 robots."
While public attention has often been captured by the spectacle of humanoid robots participating in marathons, as seen in Beijing, the true technological frontier in humanoid robotics lies in the development of sophisticated hands. This sentiment was echoed by Elon Musk, who at an event last fall described the hands as representing "the majority of the engineering difficulty of the entire robot." Founded in 2023, LinkerBot has rapidly ascended to a leading position in this critical sub-sector of robotics. The company reported shipping 10,000 robotic hands in the past year, accounting for an estimated 80 percent of the global demand. Its client base spans research institutions, manufacturing firms, and other companies developing complete humanoid robot systems.
LinkerBot’s trajectory has also been marked by significant investor confidence. In a mere 13 months, the startup secured six rounds of funding from a diverse group of investors, including entities linked to the Chinese government, Alibaba’s Ant Group, and HongShan Capital, the Chinese affiliate of Sequoia Capital. The company is reportedly seeking further financing at a valuation of $6 billion, a doubling of its worth in just a few months. Furthermore, reports from Bloomberg suggest LinkerBot is exploring a public listing in Hong Kong, a move that, if realized, would signify a significant milestone for the burgeoning Chinese robotics industry.
Zhou Yong’s pivot to robotics followed the successful sale of a previous startup focused on autonomous driving in 2019. He had anticipated a significant boom in the robotics industry around 2025, but the pace of its growth has still surprised him. While companies like OpenAI were once at the vanguard of robotic hand development, recent years have seen Chinese startups emerge as leaders. This shift is partly attributed to a redirection of focus among many American counterparts towards large language models and other AI software. Zhou observes that for robotics companies, "the valuation gap between the Chinese and US primary markets has been basically erased," indicating a growing parity in market perception and investment potential.
At the heart of Zhou’s ambition lies a lifelong aspiration to bring to life a real-world counterpart of Doraemon, the beloved Japanese anime character known for its boundless array of futuristic gadgets. His personal digital presence, with a WeChat avatar featuring Doraemon, underscores this profound inspiration. He views the development of a capable and dexterous robotic hand as an indispensable step toward realizing this dream.
The Strategy of "Selling Shovels to Miners"
LinkerBot’s strategic approach, as articulated by Zhou, centers on excelling in a single, critical component rather than attempting to build entire humanoid robots. This focus on hands allows the company to avoid direct competition with established players in the humanoid robot market, such as Unitree and Tesla. This specialization is likened by Hong Shangguan, a seasoned investor in China’s technology sector and former partner at Legend Capital, to "selling water or shovels [during the gold rush]" within a burgeoning industry. This analogy highlights the fundamental need for essential components that underpin a larger technological expansion.
The company’s product line, Linker Hand, offers a range of options priced between $600 and $15,000, with variations dictated by the number of joints and the required level of dexterity. Rui Ma, founder of the independent research firm Tech Buzz China, notes that while many companies can showcase impressive demonstrations, "fewer can ship hands that factories can actually afford to install." Tech Buzz China’s recent analysis identified LinkerBot as the startup best positioned to establish itself as the industry standard in the near term, underscoring the company’s pragmatic focus on manufacturability and affordability.
Zhou expresses strong confidence in China’s manufacturing prowess, drawing parallels with other industries where Chinese companies have achieved global leadership when starting concurrently with international competitors, citing solar panels and electric vehicles as prime examples. He frames LinkerBot’s role as facilitating the global robotics industry by enabling manufacturers worldwide to reduce costs and accelerate adoption. To address historical skepticism regarding the quality of Chinese-made products, LinkerBot offers international clients an extended exchange period of up to one year, a testament to their commitment to product reliability and customer satisfaction.
The Inevitable Rise of the Robotic Workforce
Zhou outlines a three-stage rollout for humanoid robots. The initial phase, already evident through extensive demonstrations by Chinese companies over the past year, involves robots performing roles focused on entertainment, greeting guests, and fulfilling emotional or companionship needs. The subsequent stage will see robots undertaking more defined tasks, such as beverage preparation, cooking, and package sorting. The ultimate phase, Zhou posits, will involve deploying robots in highly complex and unpredictable environments, such as private residences. The challenge here lies in the need for robots to navigate and adapt to hundreds of different homes, each with its unique layout and array of objects. Success in this stage requires robots to seamlessly integrate a multitude of skills to accomplish even minor tasks.
A current strategic focus for LinkerBot is the integration of its hands into sophisticated manufacturing facilities, a move that aligns with China’s economic drive to upgrade its industrial base. The company is even employing its own robotic hands on its assembly lines for producing more robotic hands, a powerful demonstration of their industrial utility and reliability.
China’s traditional advantage of abundant low-cost labor is increasingly being complemented by a strong demand for automation within domestic manufacturing. Shangguan points out that even within China’s advanced manufacturing sectors, such as electric vehicle factories, production managers are reporting labor shortages. This is partly attributed to a generational shift where younger workers are less inclined to pursue factory employment. Consequently, "For jobs where we can’t find workers, we also have to get robots," Shangguan states.
Zhou’s long-term vision foresees a future where robots will ultimately surpass humans in capability by a factor of "100 times," leading to their complete replacement in the workforce. While the societal implications of such a scenario are profound, Zhou expresses a pragmatic perspective, suggesting that individual concerns will shift from employment status to the availability of social safety nets. "People don’t really care whether they are unemployed; what they care about is whether they receive relief payments or welfare benefits," he contends.
He predicts that by the time AI and robotics achieve this level of advancement, the resulting abundance of goods and services will render traditional work obsolete. However, Zhou acknowledges that even in such a technologically advanced society, disparities will persist. He illustrates this by suggesting that while some may enjoy the luxury of lunar travel, others might be limited to vacations in Italy, highlighting the enduring nature of inequality.
This report is an edition of the "Made in China" newsletter, produced by Zeyi Yang and Louise Matsakis. Previous editions can be accessed via the provided link.
