Samsung Electronics Strengthens Robot Business Fully... Becomes Largest Shareholder of Rainbow Robotics

Following Last Year's Equity Investment, Call Option Exercised
Establishing a Foundation for Humanoid Robot Development
Directly Under CEO, 'Mirae Robot Promotion Team' Established

Samsung Electronics is set to expand its robot business in earnest by becoming the largest shareholder of Rainbow Robotics, a KOSDAQ-listed robot company. It also established a Future Robot Promotion Team directly under the CEO.

Seoul Samsung Electronics Seocho Building

On the 31st, Samsung Electronics announced that it increased its stake in Rainbow Robotics from 14.71% to 35%, securing the position of the largest shareholder. It exercised the preemptive purchase right (call option, the right to buy additional shares under predetermined conditions) to acquire an additional 20.29% stake for approximately 267.4 billion KRW. Rainbow Robotics will be incorporated as a subsidiary of Samsung Electronics. Previously, Samsung Electronics invested about 86.8 billion KRW last year to secure shares in Rainbow Robotics.

Rainbow Robotics is a robot-specialized company established in 2011 by the KAIST HUBO Lab research team, who developed Korea’s first bipedal walking robot, ‘Hubo.’ After listing on the KOSDAQ market in February 2021, it accelerated its global market entry by establishing a sales corporation in Illinois, USA, in April last year. Rainbow Robotics has supplied its robots to LIG Nex1, Google, the U.S. Naval Research Laboratory (NRL), and the U.S. National Science Foundation (NSF), and has been recognized for its technological capabilities through collaboration with the Korea Astronomy and Space Science Institute.

◆ Establishment of Future Robot Promotion Team... Accelerating Intelligent Robot Development = Samsung Electronics also established a dedicated organization for robot technology development, the Future Robot Promotion Team. The head of the team is Professor Oh Junho, an honorary professor at KAIST and a founding member and former Chief Technology Officer (CTO) of Rainbow Robotics. Professor Oh also serves as an advisor to Samsung Electronics. Based on his long-accumulated robot technology and business know-how, he will contribute to Samsung Electronics’ robot development. This organization operates directly under the CEO of Samsung Electronics and focuses on research of future robot technologies, including humanoids, and securing core technologies. Samsung Electronics plans to accelerate the development of advanced intelligent robots by integrating its AI and software technologies with Rainbow Robotics’ robot technologies.

Samsung Electronics is strengthening cooperation between the two companies by newly operating a ‘Synergy Council.’ This council promotes mutual growth in various fields such as robot technology development, business strategy formulation, and overseas market demand discovery. Samsung Electronics plans to utilize Rainbow Robotics’ collaborative robots, dual-arm robots, and autonomous mobile robots for automation in manufacturing and logistics sectors. These robots can significantly improve work efficiency by learning and analyzing field data using AI algorithms. Rainbow Robotics is expected to accelerate its overseas market entry by leveraging Samsung Electronics’ global sales network. Through this, Samsung Electronics aims to prove the competitiveness of domestic robot technology in the global market and promote the mutual growth of both companies.

Bipedal robot and quadrupedal robot (far right) developed by Rainbow Robotics. Provided by Rainbow Robotics

◆ Expanding Future Strategy Focused on ‘Robots and AI’ = Samsung Electronics’ incorporation of Rainbow Robotics as a subsidiary is interpreted as a strong will to grow robots into a core future business. Chairman Lee Jae-yong announced in August 2021 that the company would invest 240 trillion KRW over three years in next-generation growth engines such as robots, artificial intelligence (AI), bio, and next-generation communications.

Vice Chairman Han Jong-hee announced last September that four core areas?medical technology (MedTech), robots, automotive electronics, and eco-friendly air conditioning solutions?would be selected and nurtured as next-generation growth businesses. Earlier, at CES 2024, the world’s largest IT and electronics exhibition held in the U.S. in January, he stated, “The ultimate goal this year is to actively introduce AI functions and create intelligent robots where robots and humans can coexist.” The Device eXperience (DX) division led by Vice Chairman Han upgraded the robot commercialization task force (TF) to a robot business team last year and reorganized the organization in May this year to strengthen the next-generation intelligent robot business.

A Samsung Electronics official said, “Synergy effects are expected in future robot development,” adding, “Ultimately, it will greatly contribute to the ‘win-win’ growth of both companies.”