On December 31, 2023, Samsung Electronics announced a significant increase in its investment in Rainbow Robotics, a leading South Korean robotics manufacturer. The tech giant exercised a call option to raise its stake in the company by 35%, enhancing its commitment to the burgeoning robotics sector which it views as a pivotal component of its future growth strategy.
Samsung's initial investment in Rainbow Robotics came earlier in January 2023 when it acquired a 10.2% stake for approximately $40 million. This marked Samsung's first foray into collaboration with the domestic robotics firm. By March 2023, the investment had increased to 14.99%, coinciding with the signing of a call option agreement. This arrangement grants Samsung the flexibility to purchase additional shares from major stakeholders if they are made available.
The move to bolster its shareholding in Rainbow Robotics aligns with Samsung's broader strategy to delve deeper into advanced robotic technologies. Through this partnership, the company aims to integrate its artificial intelligence (AI) and software capabilities with Rainbow Robotics’ pioneering products. Notably, this includes innovations such as Hubo, Korea's first bipedal robot, which is expected to accelerate the development of smart humanoid robotics.
Samsung's plans also include the establishment of a council with Rainbow Robotics, focused on fostering synergy and exploring new market avenues both domestically and internationally. The collaboration is particularly centred on leveraging Rainbow Robotics’ array of technologies, which encompass dual-arm mobile manipulators, collaborative robots, and autonomous mobile robots. These tools are being targeted for automating various manufacturing and logistics operations within Samsung’s own facilities.
Rainbow Robotics has been at the forefront of robotic research since its inception in 2011, spearheaded by the Korean Advanced Institute of Science and Technology (KAIST). The company has partnered with Hyundai Rotem, a subsidiary of Hyundai Motor, to develop advanced robotics solutions including quadruped robots and bipedal platforms, effectively pushing the boundaries of human-robot interactions.
In a bid to streamline its robotics initiatives, Samsung announced plans to establish a Future Robotics Office. This new division will be overseen by a chief who is expected to report directly to the company's CEO. Significant to this development is the appointment of Oh Jun-ho, who co-founded Rainbow Robotics and serves as an honorary professor at KAIST. After concluding his tenure at Rainbow Robotics, he will transition to Samsung as an advisor and lead the Future Robotics Office. This move is indicative of Samsung's strategy, orchestrated by Vice Chairman Han Jong-hee, to establish robotics as a core pillar for future business development, following the launch of its dedicated robotics business team in 2022.
Source: Noah Wire Services