Kiwibot, a company specializing in delivery robotics and based in the Bay Area and Colombia, made a big announcement this week. They have acquired Auto Mobility Solutions, a Taipei-based firm that produces chips specifically for robotics and autonomous driving. The details of the transaction have not been disclosed, but Kiwibot’s founder and CEO, Felipe Chávez Cortés, tells TechCrunch that rising tensions between the US and China have played a significant role in the acquisition.
According to Kiwibot, this deal marks a “significant milestone in both companies’ journeys towards innovation and safeguarding privacy in the robotics industry.” This is especially important for intelligent robots that are sourced from China and deployed in Western markets.
This is likely going to be an instructive model for many in the industry, in light of the Senate’s big push for ByteDance to sell its massively successful social media platform, TikTok.
The US government has previously set its sights on various Chinese tech giants, including Huawei and DJI. With Taiwan’s tenuous geopolitical situation and its significant market share in semiconductors, it has become a central focus of the conflict. Some government officials have even suggested the idea of the US bombing TSMC, a Taiwanese chip giant, in the event of a Chinese invasion. Taking control of TSMC’s facilities would give a country a near monopoly in certain chip verticals.
While smaller companies like Auto Mobility Solutions may not be an immediate focus, it should be noted that the company produces chips in both Taipei and Shenzhen, which is located in South China and now just a 20-minute subway ride from Hong Kong.
In a statement, Chávez Cortés emphasizes cybersecurity concerns as a key motivator for the acquisition. He states, “The acquisition of Auto is a game-changer for us, bringing a wealth of technological innovation and a strong patent portfolio that will significantly enhance our cybersecurity measures for AI-powered robotics.” He also mentions that this move not only strengthens Kiwibot’s position in the market, but also securely connects the manufacturing expertise from Asia with the AI development in the West.
Kiwibot also expects this deal to help establish a presence in Asia, as Auto Mobility Solutions has a significant presence in Taiwan and China. So far, Kiwibot has found its biggest successes on college campuses.