Samsung Electronics Boosts Stake in Rainbow Robotics to 35%

By means of a call option, Samsung Electronics (SSNLF, Financials) has declared intentions to become the biggest stakeholder in Rainbow Robotics, raising its ownership from 14.7% to 35%. Valued at 86.8 billion South Korean won ($72.8 million), the action indicates a major commitment to promoting robots technology by including Rainbow robots into Samsung's consolidated financial records.

Originally founded in 2011 by experts from the Humanoid Robot Research Center of the Korea Advanced Institute of Science & Technology, Rainbow Robotics created Korea's first two-legged walking robot, "Hubo." Combining Samsung's artificial intelligence and software knowledge with Rainbow Robotics' robotics skills will help to hasten the creation of intelligent humanoid robots and other breakthrough technologies.

Additionally formed by Samsung is a Future Robotics Office directly answering to the CEO. Underlining projects in humanoid robots and associated technologies, this division will help to establish robotics as a major engine of corporate development. Advisor to Samsung and head of the new office will be Dr. Jun-Ho Oh, an honorary professor at KAIST and founding member of Rainbow Robotics.

Plans for a synergy council to drive corporate strategy and evaluate worldwide market possibilities are part of the cooperation. Samsung wants Rainbow Robotics' dual-arm mobile manipulators, collaborative robots, and autonomous mobile robots to improve production and logistics automation. Using artificial intelligence algorithms to examine real-time environmental data is supposed to increase operational efficiency of these systems.

Global sales network of Samsung will help Rainbow Robotics to increase its footprint in other countries. The cooperation highlights Samsung's strategic move toward including robots into its range of products, therefore reflecting its aspirations to dominate the worldwide robotics market.