“Foxconn simply has extensive manufacturing expertise, ” Wendy Tan White, CEO of Intrinsic, told Fortune in an interview. She noted that Foxconn, widely recognized for assembling Apple’s iPhones, understands which parts of the manufacturing process can be most effectively enhanced through AI. Intrinsic, a graduate of Alphabet’s moonshot program aimed at breakthrough technologies, has focused on making industrial robots more accessible and affordable. Alphabet officially launched Intrinsic as an independent company in 2021. Specifically, Intrinsic emphasizes flexible manufacturing — creating automated systems capable of responding to new data, self-optimizing, and adapting their operations. At present, industrial robots excel at fixed, predetermined tasks, and reprogramming them remains both challenging and costly. Consequently, human labor often remains the preferred choice for manufacturers requiring adaptability. White revealed that Intrinsic and Foxconn had been in discussions for “maybe a year or two, ” describing it as “inevitable” that the electronics giant would collaborate with Intrinsic on software and AI advancements. “In partnering with Intrinsic, we leverage their deep expertise in AI-driven robotics, ” Foxconn chair Young Liu said in a statement. “This partnership complements our global manufacturing leadership, enabling us to jointly unlock the factory of the future. ” In late October, Foxconn, officially Hon Hai Technology Group, announced plans to deploy robots at its new Houston facility producing Nvidia server racks. The company is also partnering with Nvidia to develop medical robots for hospitals in Taiwan. The Taiwanese firm is collaborating with mainland Chinese robotics companies as well.

In January, a Foxconn executive revealed plans to utilize robots from Shenzhen-based UBTech in its factories across mainland China. While White declined to disclose financial contributions from either Intrinsic or Foxconn to the joint venture, she emphasized that this effort is “not a pilot. ” Asian robotics Projects like Intrinsic’s new venture represent a growing focus on “physical AI, ” where AI models operate in the real world rather than solely in digital software environments. White attributed some robotics interest to the COVID-era supply disruptions and companies’ recognition of the need to onshore manufacturing. However, the decline in manufacturing expertise within advanced economies makes it difficult for factories to scale production quickly. Robotics might address the shrinking manufacturing workforce in multiple ways. “What’s interesting and encouraging is that suppliers within manufacturing supply chains, such as machine shops, are finding that integrating AI and robotics is attracting younger workers back into these industries, ” White observed. Asia, thanks to its blend of technical know-how and manufacturing scale, is leading the industrial robotics sector. Other companies are taking note; Nvidia CEO Jensen Huang has highlighted South Korea as a future hub for this emerging technology. “Korea can build the robots, which then operate in factories to build more robots, which in turn serve more factories, ” Huang said to reporters in late October, shortly after Nvidia announced shipments of tens of thousands of GPUs to Korean firms like Hyundai and Samsung. Nonetheless, China remains the dominant player, producing over half of the world's industrial robots. Companies like Hangzhou-based Unitree are rapidly advancing humanoid robot development. “They have the skills and expertise because of their long manufacturing experience, ” White said. “I wouldn’t overlook them. ”