Japanese robotics manufacturer Yaskawa Electric (6506.T) is contemplating an investment of approximately $200 million in the United States, marking its foray into producing industrial robots locally.

This move aligns with a broader trend of manufacturers from allied nations establishing production capabilities in the U.S.

The initiative is part of Washington’s efforts to bolster high-end manufacturing and secure control over supply chains, especially amid trade tensions with China, Reuters reported.

While Japanese competitor Fanuc (6954.T) holds a prominent position as a manufacturer of factory robots for the U.S. automotive industry, Yaskawa aims to capitalize on the growing trend of automation across various sectors.

President Masahiro Ogawa highlighted the significance of local manufacturing, stating, “It gives our customers a sense of security and reliability.”

Yaskawa, with a history spanning over a century, had previously expressed its intent to increase investments in the U.S., and the potential scale of this expansion is being reported for the first time in an exclusive article published by Reuters.

Written by B.C. Begley