Samsung Electronics to invest $46 million in Korean robot developer

Hubo-2 [Source : Rainbow Robotics]

Samsung Electronics Co. will invest 59 billion won ($46.2 million) in South Korean robot developer Rainbow Robotics, a move that will help strengthen the tech giant’s capacity in artificial intelligence (AI) and humanoid robot sectors.

In an announcement Tuesday, Rainbow Robotics said that it will raise 59 billion won by selling new shares to Samsung Electronics to take a 10.3 percent stake in the robot maker. The proceeds will be used as facility and operation funds.

Rainbow Robotics’ shares surged on the announcement to an all-time high of 41,500 won on Tuesday, up 27.45 percent from the previous day.

Samsung Electronics’ investment in Rainbow Robotics is mainly to boost its capacity in AI and humanoid robots, according to Robert Cheek, an analyst at Hyundai Motor Securities Co.

Rainbow Robotics is the first listed robot manufacturer Samsung Electronics is investing in. The company - founded by humanoid robot center researchers at The Korea Advanced Institute of Science and Technology in 2011 - developed Hubo-2, the world’s first commercialized bipedal humanoid robot. Rainbow Robotics’ sales rose to a record 10.4 billion won in the first 9 months of last year, surpassing 9 billion won reported for all of 2021.

Rainbow Robotics recently developed a cooperative robot RB Series, which is a small robot that interacts with humans and work in various situations such as in factories.

Industry insiders noted that Samsung Electronics’ latest investment is part of a move to establish smart factories with RB series.

RB series, which resembles a human arm, can replace humans at dangerous production facilities and be injected in repetitive work. Unlike large-size robots, RB series is smaller and lighter and can be used in factories and warehouses.

“Rainbow Robotics plans to expand its lineup in cooperative robot area to 9 products by 2025,” said Yang Seung-yoon, a researcher at Eugene Investment & Securities Co. “Demand for cooperative robots will grow in various industries such as electronics and distribution.”

Samsung Electronics’ Executive Chairman Jay Y. Lee [Photo by Yonhap]

Samsung Electronics has picked robots as future growth engine and has been expanding in the sector. Samsung Electronics’ Executive Chairman Jay Y. Lee unveiled plans in August 2021 to invest 240 trillion won over the next three years in future businesses that include robots and AI. Samsung Electronics in the same year promoted its robot business task force to a higher team level.

Vice Chairman Han Jong-hee also told shareholders in a meeting last year that its first step to seeking new industries will be engaging in robot business and that he believes robots are a new opportunity area of client touch point.

Samsung Electronics has already introduced different forms of robots. It unveiled Samsung Bot Handy, a robot that helps household chores, at CES 2022 in Las Vegas. The robot can stably hold cups and plates.

Samsung Electronics is also awaiting release of its medical wearable robot Gait Enhancing and Motivating System (GEMS) Hip, the first wearable robot premiered at CES 2019.

Samsung Electronics’ devotion to robots comes as the technology enables applications for various purposes such as industry automation. Robot industry helps to respond to labor shortage in an aging society and link with various industries like mobility and fifth-generation.

Global robot industry is projected to grow at an annual average of 20 percent to $160 billion in 2030, up from $25 billion in 2020, according to The Export-Import Bank of Korea.

LG Electronics Inc. also established a robot production facility at its A1 factory in Gumi, North Gyeongsang Province, and started production of LG CLOi robots in December last year. U.S. Tesla Inc. has also set goal of developing AI-equipped humanoid robots.