Tainan: A large majority of vehicle manufacturers are likely to disappear within two decades as humanoid robots become increasingly common in manufacturing, a Taiwanese tech chief said Monday. Peter Chen, chairman and CEO of Qisda, a Taiwan-based technology manufacturer, made the remark at a forum in Tainan.

According to Focus Taiwan, Chen emphasized that humanoid robots are expected to revolutionize smart manufacturing, which relies heavily on data, algorithms, and computing power. Smart manufacturing advances conventional automation by embedding AI, sensors, big data, and IoT, making the production process more adaptive and self-optimizing.

Chen noted that deploying humanoid robots in smart manufacturing could address issues such as employee morale, overtime, and labor unions. However, he clarified that Qisda’s investment in Vietnam was not solely due to labor costs, as AI technology costs increase by about 15 percent annually. Qisda moved its most advanced production lines to Vietnam to maintain a competitive edge.

Chen predicted significant disruption in the vehicle industry due to humanoid robots, foreseeing the disappearance of most car brands within 10 to 20 years. He noted that traditional automakers, including well-known brands like Mercedes-Benz, are at risk. He highlighted Tesla’s efficient, largely human-free manufacturing process as a competitive advantage.

In October, Foxconn announced plans to utilize humanoid robots powered by NVIDIA’s Isaac GR00T N model in its Houston production lines. At the forum, MiRLE Chairman Sun Hong and Delta Electronics Deputy General Manager Tsai Chin-hsiung also spoke about the shift towards smart manufacturing.

Sun described the transition from automation to smart manufacturing as inevitable, while Tsai emphasized the importance of identifying company challenges for digital transformation. Delta Electronics began its transformation in 2015, addressing labor shortages and establishing a demonstration production line in 2018. Tsai reported that through standardization, automation, digitalization, and intelligentization, Delta increased production-line efficiency by three to five times, boosted capacity by 70 percent, and reduced factory floor space by 35 percent.