Zhaowei Machinery and Electronics, a Shenzhen-based company that supplies precision transmission components for Tesla’s humanoid robots, has announced plans to invest up to USD100 million in building a new manufacturing plant in Thailand.
The move is aimed at strengthening the company’s overseas production capacity, reducing logistics risks, and mitigating challenges posed by shifting international trade dynamics and tariffs. According to Zhaowei, the facility is still in the planning stage, with specific production details yet to be disclosed.
Earlier in June, Zhaowei submitted a secondary listing prospectus to the Hong Kong Stock Exchange, where it revealed that part of the raised capital would be allocated toward expanding its manufacturing footprint. The company also highlighted its strategy of establishing new plants in Southeast Asia, Europe, and other key markets to improve responsiveness to international clients, enhance global supply chain efficiency, cut logistics costs, and speed up delivery timelines.
Following the announcement, Zhaowei’s stock [SHE: 003021] initially climbed 2.4% in morning trade on the Shenzhen exchange before closing 1.6% higher at CNY118.94 (USD16.56) per share. The company’s stock has surged by 81% since the start of the year, significantly outperforming the broader market.
Financial data from its latest annual report shows that Zhaowei’s overseas sales jumped 35% year-on-year, reaching CNY212 million (USD29.5 million) in 2024. This accounted for 14% of its total revenue, compared with 10% in 2023, driven largely by increasing demand from international smart automotive and humanoid robotics clients.
As one of Tesla’s key suppliers, Zhaowei provides micro-precision transmission systems used in the dexterous hands of the US automaker’s humanoid robots. With the upcoming Thailand facility, the company is positioning itself to capitalize on the growing global demand for electric vehicles, robotics, and automation technologies while securing a stronger presence in international markets.