In the first quarter of 2026, the robot affiliates of Samsung Electronics and LG Electronics recorded remarkable sales growth, fueled by their parent companies' investments in smart factories.
This event confirms a major narrative: large corporations are accelerating their push into manufacturing automation, and these strategic investments are now translating into tangible revenue for their robotics subsidiaries. The key evidence is that Rainbow Robotics' sales to Samsung accounted for 27% of its total revenue, while Robostar's sales to LG made up 44% of its total. This shows a clear and strengthening link between the parent companies' needs and the affiliates' performance.
Let's look at the causes. First, there's the strategic push from the parent companies. Samsung Electronics, which became Rainbow Robotics' largest shareholder in late 2025, is boosting its CapEx to lead the HBM (AI memory) market. This expansion creates a massive demand for automation in its semiconductor lines, which Rainbow Robotics is set to supply with its collaborative and mobile robots. Second, LG Electronics has been internalizing robotics technology since acquiring Robostar in 2018. It recently showcased significant productivity gains at its 'LG Smart Park' and is expanding its 'AI Factory' alliance with NVIDIA. These successes justify further internal orders to Robostar for factory automation solutions.
These corporate strategies are supported by a favorable economic backdrop. The South Korean manufacturing PMI returned to expansion territory in early 2026, improving the economic rationale for investing in automation. This recovery, combined with the long-term global trend of increasing robot adoption confirmed by the International Federation of Robotics (IFR), creates a powerful tailwind.
In essence, the impressive sales figures from Rainbow Robotics and Robostar are not a one-off event. They represent a pivotal moment where the long-term vision of conglomerate-led factory automation is becoming a financial reality. This trend signals a structural shift in the manufacturing landscape, driven by the convergence of AI, robotics, and corporate strategy.
- Smart Factory: A highly digitized and connected manufacturing facility that uses technologies like AI, IoT, and robotics to improve automation, efficiency, and flexibility.
- CapEx (Capital Expenditure): Funds used by a company to acquire, upgrade, and maintain physical assets such as property, plants, buildings, technology, or equipment.
- HBM (High Bandwidth Memory): A high-performance computer memory used in high-performance computing and graphics cards, essential for AI applications.