Inventory Adjustments and Investment Delays in China’s Construction Machinery and Robotics Markets

「The Chinese construction machinery market has been on an expansionary trend, led by mining demand and exports. At the same time, demand for robots for semiconductor manufacturing equipment has been trending higher amid rapid growth in AI semiconductors and a serious shortage of general-purpose memory,」

「In the precision machinery field, although some weakness is emerging, mainly in European and US markets, signs of a bottoming out are emerging, particularly for small machines, in China's construction machinery market, where demand had continued to slow due to the prolonged property downturn and other factors. In the robotics field, prices and demand in the semiconductor memory market have bottomed out, and demand for robots used in semiconductor manufacturing equipment has been recovering since the second half of the previous fiscal year while incorporating new growth related to AI and other areas.」

「Demand in China's construction machinery market remained sluggish due to the prolonged property downturn and other factors. In the robotics field, demand for robots used in semiconductor manufacturing equipment continues to slow due to the decline in the semiconductor market, particularly memory, and US-China economic tensions, making the timing of a recovery difficult to predict. However, demand is expected to recover from FY2024, incorporating new demand related to AI and green investment.」

「In the precision machinery field, construction machinery markets outside China performed steadily, while demand in China's construction machinery market remained sluggish due to lockdowns and other effects of the zero-COVID policy.」

「In the precision machinery field, construction machinery markets outside China performed steadily, while demand in China's construction machinery market remained sluggish due to lockdowns and other effects of the zero-COVID policy.」

「In the precision machinery field, construction machinery markets outside China performed steadily. Demand in China's construction machinery market temporarily weakened due to lockdowns and other effects of the zero-COVID policy, but signs of recovery are emerging thanks to strong exports.」

「In the precision machinery field, construction machinery markets outside China performed steadily, while demand in China's construction machinery market remained sluggish due to lockdowns and other effects of the zero-COVID policy, resulting in overall weak performance.」

「In the precision machinery field, although signs of slowing demand began to emerge toward the end of FY2021, demand remained high, supported by strong performance in the first half of that fiscal year, continuing the high level seen in FY2020.」

「In the precision machinery field, concerns exist over slowing demand in China's construction machinery market, but demand remained high this fiscal year. Construction machinery markets outside China also continued to recover from the second half of the previous fiscal year and performed solidly.」

「In the precision machinery field, demand in China's construction machinery market remained high this fiscal year. In construction machinery markets outside China, demand fell sharply in the first half of the previous fiscal year due to COVID-19, but the recovery trend that began in the second half has continued, and markets are currently performing well.」

「However, some construction machinery manufacturers have begun adjusting inventories, as indicated by sales of hydraulic excavators and other factors in China, so conditions in the Chinese market require continued close monitoring.」

「In the precision machinery field, China's construction machinery market recovered quickly from the effects of COVID-19, and our sales to China exceeded the previous fiscal year's level. Although construction machinery demand outside China had fallen sharply due to market stagnation caused by COVID-19, a clear recovery trend has now emerged. In the robotics field, although general-purpose robot projects have been delayed due to COVID-19, performance remains solid not only for general industrial applications in China's rapidly recovering market but also for vehicle body assembly. Robots for semiconductor applications are also performing well due to increased capital investment by semiconductor manufacturing equipment makers, and demand is expected to steadily expand over the medium to long term.」

「In the precision machinery field, China's construction machinery market recovered quickly from the effects of COVID-19, and our sales to the Chinese market exceeded the previous fiscal year's level. Meanwhile, demand in construction machinery markets outside China fell sharply as markets stagnated due to COVID-19. Although signs of a recovery are now emerging in regions outside China, uncertainty remains due to the continuing effects of COVID-19. In the robotics field, general-purpose robots have experienced project delays due to COVID-19 but are performing steadily in China's rapidly recovering market. Although uncertainty surrounding robots for semiconductor applications has intensified due to US-China tensions, they are currently performing steadily, and demand is expected to expand steadily over the medium to long term.」

「The business environment surrounding the precision machinery and robotics businesses has been severely affected worldwide by the spread of COVID-19, which has depressed demand for construction machinery. Although the outlook remains uncertain, China's construction machinery market is recovering ahead of other markets, and we are closely monitoring developments. In the robotics market, general-purpose robots have experienced project delays due to COVID-19 but are performing well in China's rapidly recovering market. Although delivery delays by customer suppliers are a concern for robots used in semiconductor applications, demand is expected to steadily expand over the medium to long term as major semiconductor manufacturers resume investment.」

「The business environment surrounding the precision machinery and robotics businesses has deteriorated due to delays in procuring parts following damage to domestic customers' suppliers from Typhoon No. 19 of Reiwa 1, lower sales in emerging markets such as India and Indonesia and in South Korea, and postponed capital investment in China. Although demand is expected to remain solid, particularly in emerging economies, conditions in the robotics market remain challenging due to postponed capital investment in China resulting from US-China trade tensions. Robots for semiconductor applications are beginning to recover as major semiconductor manufacturers in Taiwan and South Korea resume investment, and demand is expected to steadily expand over the medium to long term.」

「The business environment surrounding the precision machinery and robotics businesses remains challenging in the robotics market, where market conditions continue to be affected by postponed capital investment in China due to US-China trade tensions. In the construction machinery market, some manufacturers are adjusting inventories due to factors including slowing demand for hydraulic excavators in China, although solid demand is expected to continue, particularly in emerging economies. In the semiconductor market, we believe conditions have bottomed out, based on investment by major Taiwanese semiconductor manufacturers and demand forecasts from other major US equipment manufacturers. Over the medium to long term, we expect demand for robots to steadily expand.」

「However, some construction machinery manufacturers have begun adjusting inventories, so we continue to closely monitor conditions in the Chinese market. In the robotics market, current conditions have deteriorated due to postponed capital investment in China resulting from US-China trade tensions and semiconductor manufacturers postponing investment. Although overseas markets are expected to remain unstable for some time, we expect demand in Japan to steadily expand across industrial fields, including human-robot collaborative applications.」