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Automation Boom: UBS Sees Order Backlogs Through 2027 for Key Taiwanese Manufacturers
Electronic Technology · Electronic Equipment/Instruments · economic_daily · 2026-08-24
1590, 2049, 2395, 3023
Following the Taipei International Industrial Automation Exhibition, UBS highlights strong demand in AI and semiconductor sectors, recommending four Taiwanese firms with visibility through 2027.
What Happened
Automation Industry Outlook: UBS analyst Chen Wen-jin notes that the Taipei International Industrial Automation Exhibition highlighted robust demand across semiconductor back-end equipment, AI server manufacturing, and industrial automation. Order visibility for major manufacturers remains strong, with production schedules extending into early 2027, signaling a sustained upward cycle.
Key Manufacturer Momentum: UBS maintains a 'Buy' rating on four Taiwanese firms: AirTAC, Hiwin, Advantech, and Sinbon. Hiwin is gaining traction in AI robotics and CPO components, while Advantech is leveraging AI Agent platforms to optimize manufacturing efficiency, and Sinbon is benefiting from increased shipments for humanoid robotics.
Technological Trends: Market attention is focused on advanced packaging, CPO equipment, and Autonomous Mobile Robots (AMR). While humanoid robot projects are largely in the prototyping phase, the demand for automation solutions in the semiconductor and optoelectronics sectors has become a primary driver for supply chain profitability.
Commercialization Potential: Advantech’s AI Agent platform is viewed as a pivotal development for the next wave of automation, with significant commercialization expected within the next one to two years. Overall, the industrial automation dividend is expected to broaden, positioning equipment suppliers for long-term growth.