Samsung Gadgets Co., the world’s biggest memory chip and cell phone producer, is set to contribute 59 billion won ($46.4 million) to South Korean robot creator Rainbow Advanced mechanics as the tech monster looks for future development motors from the business.
Recently, Rainbow stated that it had decided to sell Samsung 1.94 million new shares at 30,400 won per share. The shares will be listed on January 20. Samsung will acquire a 10.3% stake in the maker of collaborative robots due to the transaction.
After the announcement, Rainbow shares rose 27.45 percent to close at 41,550 won, far outperforming the country’s tech-heavy Kosdaq by 0.51 percent.
Rainbow was the first publicly traded robotics company to get a loan from Samsung. Samsung has been nurturing the robotics business since 2020 because it saw the sector as a key to the company’s future. The South Korean tech behemoth has been focusing its investment on semiconductor-related companies like Wonik IPS Co., Dongjin Semichem Co., and Soulbrain Co.
Rainbow was established in 2011 at the Humanoid Robot Research Center of Korea Advanced Institute of Science and Technology, one of the most prestigious educational institutions in the nation.
The company’s flagship product, collaborative robots, accelerated business in 2020. While the existing industrial robots take the place of human labor, they operate at close range under human instructions.
The purpose of collaborative robots is to facilitate direct human-robot interaction in a shared space or proximity. With the help of big data and artificial intelligence, these robots are getting better.
By 2025, the global market for collaborative robots is anticipated to reach $5.1 billion, up from $836.2 million in 2020. With a total operating profit of 1.2 billion won in the first three quarters of 2022, Rainbow aims to make its first annual profit like it did last year.
Lastly, the company raised an additional 25 billion won through convertible bonds and a rights offering in addition to a 26.5 billion initial public offering in 2021.