SoftBank Group announced that, while proceeding with the acquisition of ABB’s Robotics business, it had received notification from the Chinese government prohibiting the acquisition of the business. The article reviews the view that an acquisition proposal excluding China has emerged as a realistic option and that this would not affect the broader development of its physical AI strategy.
SoftBank Group signed a definitive agreement to acquire ABB’s Robotics business for more than $5.3 billion, but on 4 November 2026 received notification from China’s foreign investment security review authority prohibiting the acquisition of the business in China. This indicates that the transaction may be considered in a form excluding the Chinese market.
ABB opened a mega factory in Shanghai in 2022 after investing $150 million. The company describes the site as a cornerstone of its “in China, for China” strategy and says it accounts for more than 90% of its local sales. At the same time, given the current intensification of competition in China’s domestic market, the division of roles between a strategy prioritizing the global market and overseas sites will be important.
The article explains the physical AI strategy pursued by SoftBank from a perspective extending beyond a simple acquisition of an industrial robotics business. ABB’s collaboration with NVIDIA on a digital twin platform and the development of RobotStudio HyperReality are presented as the technological basis for more advanced handling of on-site data, improving learning efficiency and expanding the scope of application.
Finally, the article points out that an acquisition proposal separating the China business could reduce geopolitical risk while preserving overall value. On the assumption that overseas digital twin technology and customer networks in Europe, the United States and Japan would be utilized, it presents the view that the $5.375 billion purchase could be completed in a “clean” form.