Samsung Electronics accelerates robotics business

Rainbow Robotics’ dual-arm robots at the company’s headquarters in Daejeon in this Oct. 2 file photo / Korea Times photo by Jung Da-bin

Tech giant secures largest stake in Rainbow Robotics

By Nam Hyun-woo

Samsung Electronics is accelerating its efforts in the robot business, investing 267.5 billion won ($181.75 million) in the Korean robot firm Rainbow Robotics to become its largest shareholder.

Samsung also established a future robotics development team, reporting directly to its CEO to capitalize on the market’s growth potential.

In a regulatory filing on Tuesday, Samsung said it exercised its call option to increase its stake in Rainbow Robotics, boosting its ownership from 14.71 percent to 35 percent by purchasing 3.94 million shares. Following the transaction, Rainbow Robotics became a subsidiary of Samsung Electronics, meaning the robot firm’s financial performance will be reflected in Samsung’s consolidated earnings.

Rainbow Robotics was established in 2011 by a Korea Advanced Institute of Science & Technology research team led by Professor Oh Jun-ho, who is known for developing Hubo, Korea’s first two-legged walking humanoid, in 2005.

Oh, who was the largest shareholder in Rainbow Robotics with a 17.37 percent stake, became the second-largest stakeholder in the company with 7.78 percent following the transaction.

Samsung first secured a 14.71 percent stake in Rainbow Robotics in 2023 by investing 86.8 billion won as the company sought to expand its portfolio into the robotics business.

Market watchers then speculated that Samsung may merge with Rainbow Robotics, but Samsung said in a statement that the transaction would create “a synergy between the two companies,” meaning Rainbow Robotics will remain a subsidiary for now.

Samsung Electronics CEO and Vice Chairman Han Jong-hee speaks during a ceremony for the company’s 55th founding anniversary in Suwon, Gyeonggi Province, Nov. 1. Courtesy of Samsung Electronics

Samsung has been seeking to expand its portfolio into robotics in recent years.

In September, Samsung Electronics CEO and Vice Chairman Han Jong-hee selected medical technology, robots, electronic auto parts and eco-friendly air conditioning as the company’s next-generation businesses, stressing “strong growth” in those areas.

During the CES 2024 trade show in January, Han said the company’s ultimate goal is to develop intelligent robots that can coexist with humans by integrating advanced artificial intelligence (AI) features.

In 2023, Samsung’s Device Experience division expanded its robot business task force into a robot business team and restructured the team in May to enhance its capabilities.

As part of those efforts, Samsung said it created a future robot development team directly under the CEO, which will focus on developing advanced robotics technologies to secure foundational technological competitiveness. Oh of Rainbow Robotics will lead the team.

Samsung said it plans to utilize Rainbow Robotics’ various robots for automation in manufacturing, logistics and other operations. These robots can significantly enhance their operational capabilities by learning and analyzing situational data and environmental variables through AI algorithms.

Samsung Electronics’ AI home robot Ballie / Courtesy of Samsung Electronics

By becoming a subsidiary of Samsung, Rainbow Robotics can capitalize on the tech giant’s extensive global sales infrastructure to boost its entry into international markets.

Rainbow Robotics currently has cooperative robots, dual-arm robots, autonomous mobile robots and humanoids in its portfolio.

Of them, its dual-arm robot RB-Y1 is speculated to be used in Samsung’s chips and home appliance manufacturing process. Samsung reportedly already tested the robot for its chip manufacturing process.

On the consumer side, Rainbow Robotics’ technology can contribute to future upgrades in Samsung’s ball-shaped AI home robot, Ballie. Ballie connects to various home appliances and provides intelligent control to enable more personalized services catered to users’ patterns. Samsung plans to roll out the robot within 2025.

Market analysts BCC Research anticipates that the global robotics market, which was valued at $67.9 billion in 2023, will reach $165.2 billion by the end of 2029.