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TAP TIMES -35- JUNE 2025

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As such, reshoring efforts are expected In this environment, large manufacturers
to prioritize scaling advanced manu- are increasingly willing to invest in long-
facturing technologies for key industries. term, high-end automation to offset labor
market volatility.
Notably, human-centric robotics products
from Tesla, Boston Dynamics, and This trend is benefiting demand for
Agility Robotics are being developed advanced industrial robots like six-axis
specifically for factory use, offering a arms, dual-arm collaboratives, AI vision-
potential solution to workforce shortages. guided systems, and even humanoid
However, the high cost of deployment— robots.
further exacerbated by tariffs on
imported components — may hinder their Nobel laureate Daron Acemoglu has also
widespread adoption. emphasized that AI and robotics are
essential to reshoring U.S. supply chains,
The push for domestic automation as they can replace labor and handle
is not only driving companies to heterogeneous tasks.
reduce dependence on China but also
accelerating process optimization through Furthermore, in high-wage environments,
software and hardware upgrades. automation investments offer faster
returns, en-
couraging faster
R&D and deployment
cycles among major
manufacturers.

Overall, while
uncertain tariff risks
may accelerate
U.S. manufacturing
Room for growth localization and
automation
upgrades, small
and medium-sized
manufacturers
(SMEs) could face
significant hurdles.
trendforce.com

NVIDIA, Saudi Arabia to partner in AI, cloud and computing

SANTA CLARA, Calif. — NVIDIA says will work together on several key
it will partner with Saudi Arabia to initiatives. The country will build AI
transform that country into a “global factories with a capacity up to 500 mW
powerhouse” in AI, cloud and enterprise powered by NVIDIA’s most advanced
computing, digital twins and robotics. GPUs over the next five years.
NVIDIA and leading Saudi organization nvidia.com