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Foxconn Technology Group, an electronics manufacturer, plans to use 300,000 robots by the end of this year to replace repetitive and dangerous jobs on the production line.

Although the industry is booming with a rapid growth rate in recent years, Chinese robot makers are still facing challenges like lower market share in high-end products as well as shortages in innovation and technology, Song said.

Foreign companies produced more than 27,000 of all the robots sold in China last year. About 80 percent of these are multi-joint robots, with advanced technologies. Chinese companies mainly produce coordinate robots, which are mostly used for delivering goods in different industries.

"Despite a top market demand, China has only a few leading firms that are able to compete internationally," Song said. "Due to the scarcity of technical talent, the robotics industry has encountered a bottleneck, especially when it comes to detailed industry segments."

He Rui, director of Mianyang Fude Robot Co Ltd, a Sichuan-based company, said the company has been undertaking research and development on new types of robots that can be used by various clients.

"We are focusing on areas that are not dominated by foreign companies," he said.

He added that the company sold about 40 industrial robots last year. Fude Robot aims to triple revenue from the current 20 million yuan ($3.22 million) to 60 million yuan in three years.