Samsung triples purchases from robot subsidiary Rainbow Robotics

Samsung Electronics tripled its purchases from robot subsidiary Rainbow Robotics in the first half of this year compared with the same period a year ago, as the company steps up efforts to secure core robotics technology and talent, including in humanoid robots. Rainbow Robotics has also significantly expanded its research and development workforce over the same period.

The surge in transactions comes as Samsung Electronics last month consolidated its robot-related personnel and units under the "Robotics Experience (RX) Business Promotion Office," reporting directly to President and CEO Roh Tae-moon, accelerating its push into robotics as a new business. Analysts say subsidiary Rainbow Robotics is already reaping the benefits of that closer alignment.

According to Rainbow Robotics' semiannual report filed Thursday, Samsung Electronics purchased 5.68 billion won ($4.02 million) worth of goods from Rainbow Robotics in the first half of this year — nearly three times the 1.92 billion won recorded in the first half of last year.

Rainbow Robotics was officially brought under Samsung Electronics as a subsidiary in March last year and has been growing its transaction volume by selling robotic products to its largest shareholder.

Sales generated through transactions with Samsung Electronics in the first half of this year accounted for about 27 percent of Rainbow Robotics' total revenue of 21.38 billion won — up nearly 10 percentage points from 18 percent in the same period last year.

Rainbow Robotics' main product lineup includes a mobile humanoid robot that combines dual-arm manipulation with wheeled mobility, a quadruped robot commonly known as a robot dog, and a collaborative robot arm.

Samsung Electronics has been proactively deploying Rainbow Robotics' collaborative robots, dual-arm robots and autonomous mobile robots at its production facilities and logistics sites to automate operations.

Earlier, Samsung Research America in Silicon Valley purchased a Rainbow Robotics quadruped robot last year for use in patrolling its premises.

Samsung Electronics is also supporting Rainbow Robotics' overseas sales push. Rainbow Robotics' US subsidiary, established in Illinois for North American sales operations, posted revenue of 5.6 billion won in just the first half of this year — far surpassing its full-year revenue of 784 million won last year. The unit also swung to a net profit of 1 billion won in the first half, reversing a net loss of 1.3 billion won for all of last year.

Industry observers expect Rainbow Robotics to sustain its growth trajectory, noting its advantage over rivals in having Samsung Electronics as a stable, large-scale customer.

Rainbow Robotics aims to build a full product lineup that goes beyond finished robots to include key components critical to commercializing humanoid robots — among them dexterous hands and actuators.

To that end, the company has been rapidly hiring R&D talent. Its R&D headcount grew from 70 in the first half of last year to 114 in the first half of this year. The number of employees with master's degrees rose from 29 to 52, while those with bachelor's degrees increased from 30 to 50.

According to industry sources, dexterous hands account for 17 to 31 percent of a humanoid robot's component costs, reflecting both the high technical barriers and the expense involved. Rainbow Robotics is conducting broad-based hiring to bring in-house the dexterous hand technology as well as the locomotion and manipulation capabilities needed for human-like natural movement.

Samsung Electronics is maximizing synergies by serving as a test bed, validating Rainbow Robotics' products at its own production facilities. The plan is to use the experience and data gathered through that process to refine the technology and then move into industrial and home robotics in earnest.

For Rainbow Robotics, the partnership with its parent company represents an opportunity not only to grow revenue but also to advance its proprietary technology and expand its business.

"As competition intensifies, the competitive landscape will increasingly favor companies that have secured both technological capability and real-world application experience," Rainbow Robotics said in its semiannual report. "We will strengthen our market position based on our domestic experience and track record."