Samsung and LG Target Robotics as Future Growth Drivers

Lee Jae-yong, Chairman of Samsung Electronics, and Koo Kwang-mo, Chairman of LG Group, have identified robotics as a key growth driver for their companies and are accelerating their business development efforts. Both leaders are directly overseeing technology development and global collaborations, with Samsung focusing on in-house robot technology and LG emphasizing humanoid development through partnerships with NVIDIA and its subsidiaries.

As of October 29, industry sources indicate that Samsung Electronics and LG Electronics are speeding up the establishment of commercialization foundations beyond just robot technology development. Samsung is concentrating on securing core technologies through acquiring stakes in robotics firms and establishing dedicated organizations. Meanwhile, LG is enhancing its competitiveness in the robotics sector by expanding collaborations with global AI companies and consolidating the capabilities of its subsidiaries. Both companies plan to expand their business areas from manufacturing environments to home robotics.

Lee visited the Robotics Experience (RX) business promotion office at Samsung Electronics' Seoul R&D campus on October 27, marking the fourth anniversary of his chairmanship. Instead of a formal celebration, he spent about three hours reviewing the status of robot technology development and commercialization.

The RX office was established in July under the direct supervision of the head of the Device Experience (DX) division. It consolidates dispersed robotics capabilities within the company to oversee everything from long-term strategy formulation to technology development and commercialization. Samsung has been reorganizing and investing in its robotics capabilities, becoming the largest shareholder of Rainbow Robotics and establishing a Future Robotics Promotion Team.

Samsung is advancing the development and validation of industrial robots centered around its semiconductor and home appliance manufacturing facilities. The company plans to gradually introduce humanoid manufacturing robots as it transitions its domestic and international production facilities into AI autonomous factories by 2030. The strategy involves utilizing operational data gathered from manufacturing sites to enhance robot performance and expand into both B2B and consumer markets.

Lee's push for the robotics business aims to secure new revenue sources amid slowing growth in the DX sector. The DX division reported an operating loss of 800 billion won in the third quarter, marking its second consecutive quarter of losses. The need to cultivate robotics as a next-generation growth pillar has become more pressing due to declining profitability in existing core businesses amid competition from Chinese firms and rising cost pressures. Samsung plans to accelerate the commercialization of industrial robots by leveraging its own manufacturing facilities as initial demand sources.

LG is also accelerating its robotics business through global collaborations and technology integration among its subsidiaries. Koo has met with Jensen Huang, CEO of NVIDIA, to discuss expanding cooperation in the field of physical AI. In September, LG Electronics and NVIDIA signed a memorandum of understanding (MOU) to begin practical collaboration on robot technology development and commercialization.

LG is implementing a 'One LG' strategy that combines NVIDIA's AI technology with the hardware capabilities of its subsidiaries. The company is preparing to unveil a bipedal humanoid robot based on NVIDIA's AI model, Isaac Groot, in the first quarter of next year. Plans include expanding its business area from core robot components to finished products by integrating LG Electronics' actuators, LG Innotek's sensors, and LG Energy Solution's battery technology.

LG Electronics is also focusing on the commercialization of robots centered around manufacturing environments. The company plans to deploy its wheeled humanoid robot, LG Cloi, at its Tennessee factory for validation and aims to target the B2B market in academia, public sectors, and manufacturing. During its earnings announcement on October 28, LG stated it expects to expand its business around 2030, when the humanoid market is anticipated to grow significantly, while also ensuring price competitiveness for home robots.

Both companies are investing in their robotics businesses to secure new revenue sources beyond the growth limits of their existing core sectors. With advancements in AI technology broadening the applications of industrial and commercial robots, significant growth is anticipated. Morgan Stanley projects that the global humanoid market will reach $5 trillion by 2050, with approximately 90% of operational robots being utilized for industrial and commercial purposes.