Samsung will try to compensate for business failures by creating humanoid robots

Against the backdrop of a slowdown in the development of key business areas, such as the production of semiconductors and mobile devices, Samsung Electronics decided to strengthen its position by intensifying its activities in the development of humanoid robots.

Image source: Rainbow Robotics

As reported by TrendForce, Samsung announced on December 31 that it had acquired a controlling stake in robotic systems developer Rainbow Robotics, founded in 2011 by scientists from the Korea Advanced Institute of Technology (KAIST). In 2023, Samsung has already invested 86.8 billion South Korean won (about $60 million) to become the owner of a 14.7% stake in this company. However, now, having exercised the option, the corporation has increased its stake to 35%, becoming the largest shareholder.

Samsung plans to combine its artificial intelligence and software competencies with the excellence of Rainbow Robotics, which developed Hubo, South Korea’s first bipedal robot. The goal of the development will be the production of a new generation of intelligent humanoid robots, for which a project will be created within Samsung called the Future Robotics Initiative Team, which will become part of the DX Division. In addition, Samsung intends to use other Rainbow Robotics developments to automate its manufacturing and logistics processes, such as autonomous mobile systems and two-armed robots.

As TrendForce emphasizes, Samsung’s entry into the humanoid robot market will intensify competition in this area. The company’s main rival in the domestic market will be Hyundai Motor, which has strengthened its position in robotics by acquiring Boston Dynamics in 2021, and in addition, continuing to actively work on the creation of “universal humanoid robots together with Toyota.”

On the international stage, competition is no less intense. Tesla, a leader in the field of electric vehicles, is developing its own humanoid robot Optimus and plans to begin mass production in small volumes in 2025, and by 2026 to enter mass production for sale to other companies.

Another major player in the development of humanoid robots is Nvidia. The company plans to release Jetson Thor compact computers designed specifically for humanoid robots in the first half of 2025. These devices rely on software to train AI robots and powerful processors to power them. Notably, Nvidia’s expansion into robotics comes as Amazon, Microsoft and Google are looking to reduce their dependence on Nvidia while also showing interest in the humanoid robot market.

As for the prospects of this market, according to a TrendForce study, the global market for robotic systems will exceed $2 billion by 2027. Mass production of humanoid robots will begin in 2025, and the average annual growth rate will be 154% in the period from 2024 to 2027.