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Samsung Gains Green Light to Acquire Rainbow Robotics, Advancing AI-Driven Automation

Duri by Duri
PUBLISHED: March 5, 2025 UPDATED: March 8, 2025
in GM, Samsung, Ssangyong
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Samsung Gains Green Light to Acquire Rainbow Robotics, Advancing AI-Driven Automation

Image credits: Rainbow Robotics

South Korea’s Fair Trade Commission (FTC) has approved Samsung Electronics’ acquisition of robotics startup Rainbow Robotics, clearing the way for the tech giant’s expansion into advanced automation. The approval, granted on March 5, follows a two-month regulatory review, which concluded that the deal poses no significant risk of monopoly.

Samsung initially acquired a 35% stake in Rainbow Robotics for 86.8 billion won (US$59 million) in 2023. With the latest approval, the company will proceed with acquiring an additional 20.29% stake, making it the largest shareholder. The acquisition aligns with Samsung’s broader strategy to diversify its business and strengthen its position in the robotics sector.

The acquisition is part of Samsung’s broader plan to advance robotics technology, particularly in humanoid robots. The company aims to combine its artificial intelligence (AI) and software capabilities with Rainbow Robotics’ expertise to accelerate the development of intelligent robotic systems.

Rainbow Robotics, established in 2011 by researchers from the Korea Advanced Institute of Science & Technology (KAIST), is known for creating South Korea’s first two-legged humanoid robot, Hubo. The company has extensive experience in robotics development, making it a strategic partner for Samsung’s expansion into the sector.

Samsung Electronics Vice Chairman and co-CEO Han Jong-hee has highlighted AI as a key driver of future growth, stating that AI-powered innovations will be central to the company’s strategy. Samsung’s SmartThings platform also plays a crucial role in this vision, ensuring seamless connectivity across its ecosystem of products, including smartphones, home appliances, and electronic components.

Regulatory authorities assessed the potential impact of the acquisition on market competition, particularly in areas where Samsung has a presence, such as memory chips and batteries. The Fair Trade Commission concluded that the deal would not hinder competition, as alternative suppliers remain available for both Samsung and its rivals. As a result, the approval was granted with minimal concerns about market restrictions.

A Fair Trade Commission official stated that the merger was approved swiftly, given its minimal impact on competition. The official emphasized that the deal would strengthen South Korea’s robotics sector, allowing it to compete more effectively in a market currently dominated by Japanese and German firms. 

Samsung Electronics believes that integrating its artificial intelligence (AI) and software capabilities with Rainbow Robotics’ expertise will drive advancements in humanoid robot development. 

Samsung’s Vice Chairman, Han Jong-hee, also discussed the company’s plans to work on AI-driven transformation, highlighting connectivity as a key element of its future strategy.

Tags: AcquisitionRoboticsSamsungStartup

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