Samsung embraces future growth with humanoid robot venture

Samsung Electronics has become the largest shareholder in Rainbow Robotics, a domestic robotics company, marking a significant move into the future robot business. After its last major business venture—the acquisition of electric and audio company Harman in 2017—Samsung has now shifted its focus to the humanoid robot market. With Samsung joining Hyundai Motor Company, which acquired Boston Dynamics, and Tesla, which is developing its own humanoid robot, the global humanoid robot market is poised for substantial growth.

Samsung Electronics announced on Tuesday that it has increased its stake in Rainbow Robotics to 35.0% by exercising an additional call option (stock purchase right), adding to its existing 14.7% stake. Samsung had previously invested 86.8 billion won in 2023 to acquire the initial 14.7% stake. With this call option exercise, Samsung Electronics will become the largest shareholder of Rainbow Robotics and include the company as a subsidiary in its consolidated financial statements.

Samsung Electronics invested approximately 267.5 billion won in this call option exercise, based on the closing price on Tuesday. Including the initial investment, the total investment exceeds 350 billion won to secure management rights to Rainbow Robotics. This marks Samsung Electronics' addition of a large-scale subsidiary for the first time since its 2017 acquisition of the audio company Harman. In 2021, Samsung Electronics Chairman Lee Jae-yong announced plans to invest 240 trillion won over three years in new industries such as robots and artificial intelligence (AI) to prepare for the group's future.

Rainbow Robotics, established in 2011 by researchers from KAIST’s Hubo Lab, is renowned for developing Hubo, Korea’s first bipedal walking robot. Samsung Electronics aims to accelerate the creation of advanced humanoids by integrating Rainbow Robotics’ expertise in robotics with its own AI and software technologies.


Do-Young Kwak now@donga.com