Japan built its robotics empire on precision engineering. Now, that advantage is eroding. As artificial intelligence migrates from software to machines that can perceive, learn, and act autonomously, Japan’s leading robotics companies are scrambling to reposition themselves. Acquisitions, open platforms, and cross-border partnerships are no longer optional. They are survival strategies.
SoftBank, Fanuc, and Yaskawa stand at the center of this shift. Their recent moves reveal a deeper reality: the robotics industry is entering a phase where data, algorithms, and ecosystem scale matter more than mechanical excellence.
SoftBank’s ABB Acquisition Signals a Strategic Bet on Physical AI
SoftBank’s acquisition of ABB’s robotics business for $5.38 billion marks one of the most significant structural shifts in global robotics in decades.
“We will unite world-class technology and talent under our shared vision to fuse Artificial Super Intelligence and robotics — driving a groundbreaking evolution that will propel humanity forward,” SoftBank Chairman and CEO Masayoshi Son said in a statement on the purchase.
ABB’s robotics division has shipped more than 500,000 units, including transport robots and collaborative robots designed to work alongside humans. The deal instantly inserts SoftBank into the top tier of industrial robotics, despite its limited history in manufacturing hardware. The acquisition also sends a message to Japan’s traditional robotics leaders. SoftBank is not merely entering the sector, it is attempting to reshape it.
The company plans to integrate ABB’s hardware with AI capabilities drawn from its portfolio of startups. It also aims to develop factory complexes powered by autonomous robots and vehicles, partly to address labor shortages in the United States.
SoftBank’s pivot reflects a broader strategic logic. The company is moving from venture-style investments toward a tightly integrated robotics ecosystem. Its recent reorganization of robotics assets under a new intermediate holding unit underscores this shift.
The Collapse of Japan’s Historical Advantage
For decades, Japanese companies dominated industrial robotics by optimizing reliability and precision. Fanuc and Yaskawa built machines that executed repetitive tasks with minimal error. That model defined global manufacturing. However, generative AI has destabilized that advantage.
Autonomous AI agents are accelerating the transition toward general-purpose robots capable of learning from real-world environments. The critical resource is no longer hardware performance alone. It is data.
Robots now require massive, diverse data sets from environments ranging from healthcare to logistics and autonomous driving. Companies that control data pipelines and software platforms increasingly dictate the industry’s trajectory.
Japan’s declining market share reflects this shift. Japanese companies controlled roughly 80% of the global robotics market in the 1980s. By 2024, their share had fallen to around 40%, according to the International Federation of Robotics. Meanwhile, competitors such as Tesla and China’s Unitree Robotics are advancing rapidly with data-centric approaches.
Fanuc’s partnership with Nvidia illustrates how dramatically the company’s strategy has changed. In December, Fanuc announced a collaboration involving open-source control software for industrial robots. Developers will be able to build software, run simulations, and collect data in virtual environments, a sharp departure from Fanuc’s historically closed architecture.
“We’ll be able to incorporate the world’s wisdom” into robots, Fanuc President and CEO Kenji Yamaguchi said.
Fanuc has already experimented with ecosystem-building through its FIELD system, developed with Cisco Systems and other partners. That platform connects robots with production equipment to enhance data visibility.
Now, Fanuc is expanding its alliances with U.S. technology companies as it attempts to regain relevance in AI-driven robotics. The move highlights a fundamental recalibration: proprietary systems no longer scale fast enough in the era of physical AI.
Yaskawa Pushes Robotics Beyond Industrial Boundaries
Yaskawa is pursuing a parallel strategy that combines AI integration with market expansion. In December, the company announced a partnership with SoftBank Corp. to develop robotic systems for office buildings, hospitals, and commercial facilities.
“We’ll expand the scope of robotics applications by incorporating AI,” Yaskawa President Masahiro Ogawa said.
Yaskawa has sold AI-equipped industrial robots since 2023 and collaborated with Nvidia on multiple initiatives. It has developed applications ranging from tunnel excavation to surgical instrument cleaning and conducted around 100 proof-of-concept projects with external partners.
The company is also considering a three-way collaboration with Nvidia and Fujitsu to advance physical AI. Its acquisition of Tokyo Robotics signals a push into humanoid robotics, where motor technology and complex motion control will play critical roles.
Collaboration Becomes Japan’s New Competitive Weapon
Japanese robotics companies have long resisted external collaboration. That culture once protected proprietary advantages. Today, it limits innovation speed.
“U.S. physical AI startups are trying out various ideas while receiving ample funding from Big Tech,” said Yushi Segawa, Partner at PwC Consulting.
The implications extend beyond corporate strategy. The global robotics race increasingly resembles the semiconductor and AI cloud battles, where scale, capital, and ecosystems determine winners. Japan’s robotics leaders now face a stark choice: adapt to the logic of physical AI or risk strategic marginalization. Their recent moves suggest they understand the stakes. Yet the outcome remains uncertain. In the emerging era of intelligent machines, engineering excellence alone no longer guarantees leadership.
Instead, the future belongs to companies that can fuse hardware, data, and software into a single operating system for the physical world. And Japan’s robotics giants are only beginning that transformation.
