Samsung Electronics’ proposal to more than double its stake in Korean robotics startup Rainbow Robotics has received local regulatory approvals.

Samsung initially invested A$95.19 million (KRW 86.8 billion) in 2023 to acquire a 14.7% stake in Rainbow Robotics.

In December, the company announced it wanted to increase its holding from 14.7% to 35% for around A$291 million (KRW 267 billion), signalling its intent to make deeper inroads into the robotics business.

The Fair Trade Commission approved Samsung’s proposal to acquire a controlling stake in Rainbow Robotics, concluding that the merger doesn’t raise significant concerns regarding market competition.

Rainbow Robotics is a rumoured possible acquisition for Samsung going forward.

“With the approval, we will accelerate the development of future robots, including advanced intelligent humanoids, by integrating our artificial intelligence and software technologies with Rainbow Robotics’ robotics technology,” a Samsung Electronics official said, according to The Korea Herald.

The FTC which looked into whether the deal unfairly restricts competitors from developing robotic technology reportedly concluded that rival firms could still procure DRAM, NAND flash and small secondary batteries from alternative suppliers, even if Samsung or its affiliate adjusted supply terms – although it found Samsung doesn’t have much incentive to do so.

“The acquisition presents an opportunity to enhance the competitiveness of the domestic robotics industry, currently led by companies from Japan and Germany,” an FTC official said.

Samsung said its decision to raise its stake in Rainbow Robotics was part of its plans to accelerate future robot development including “humanoid robots.” Rainbow Robotics was founded in 2011 by researchers from the Korea Advanced Institute of Science and Technology, and specialises in humanoid robotics technologies. The founders had developed Hubo, Korea’s first two-legged walking robot, back in 2005.

Samsung Ballie

 

Samsung now plans to utilise Rainbow Robotics’ collaborative robots, dual-arm mobile manipulators, and autonomous mobile robots for manufacturing and logistics automation tasks.

With the help of machine learning and AI technologies, the robots can improve their work capabilities and analyse situational data and environmental variables that occur in the field.

With Rainbow Robotics now becoming a subsidiary of Samsung, the startup is expected to actively access overseas markets utilising Samsung’s global sales infrastructure.

Samsung is also establishing a Future Robotics Office which reports directly to its Vice Chairman and co-CEO Han Jong-hee.

Meanwhile, Samsung’s home assistant robot which rolls around the house, Ballie, is set to go on sale later this year.