Samsung forms robotics unit as 3 major tech rivals push into physical AI

Samsung Electronics is betting its next growth engine on robots that can think and move — a market where Tesla, Hyundai and LG are already spending billions.

Samsung Electronics Co. created a dedicated robotics division on Tuesday, placing Chief Executive Officer TM Roh directly in charge of a push into physical artificial intelligence that pits the South Korean giant against Tesla Inc., Hyundai Motor Group and LG Electronics Inc.

"Robotics represents the next frontier where our strengths in semiconductors, displays and battery technology converge," Roh said in a statement. "We see physical AI as a significant growth opportunity that aligns with our core competencies."

The new unit, called the Robotics eXperience Business Office, or RX, will consolidate Samsung's robotics efforts across its consumer electronics, device solutions and Harman automotive divisions. The company also hired a former Boston Dynamics executive from Hyundai to lead strategy, according to people familiar with the matter, signaling an intent to compete in both industrial and consumer robotics.

Samsung shares rose in Seoul trading following the announcement, as investors welcomed the strategic pivot into a sector that analysts project could generate tens of billions of dollars in revenue by the end of the decade. The move positions Samsung to challenge Tesla's Optimus humanoid robot and Hyundai's Boston Dynamics lineup, which includes the Spot quadruped and Atlas humanoid platforms.

The RX unit will focus on developing robots capable of navigating dynamic environments — what the industry calls physical AI — rather than the pre-programmed industrial arms that dominate factory floors today. Samsung already produces the Ballie home robot and has invested in Rainbow Robotics, a South Korean collaborative robotics maker, but the new division signals a more aggressive posture.

Samsung's chip division, which designs the Exynos line of processors and produces memory chips, gives it a structural advantage over pure-play robotics startups. Physical AI robots require high-bandwidth memory and low-power AI accelerators — both areas where Samsung ranks among the world's top three producers. The company's display unit can supply flexible OLED panels for robot vision systems, while its battery business provides energy storage for autonomous operation.

Tesla plans to begin limited production of its Optimus humanoid robot in 2027, targeting a price below $20,000 per unit, according to the company's investor day presentations. Hyundai's Boston Dynamics has already deployed hundreds of Spot units for industrial inspection across oil and gas, construction and utilities sectors. LG Electronics formed its own robotics division in 2024 and has partnered with Bear Robotics for service robots in hospitality and healthcare.

Nvidia Corp., which supplies the computing platforms used by most robotics developers, has seen its robotics-related revenue grow as the sector expands. Amazon.com Inc. has deployed more than 750,000 robotic drive units in its fulfillment centers and recently introduced Digit, a bipedal robot from its Agility Robotics investment.

Samsung's approach differs from Tesla's vertical integration strategy. While Tesla designs its own chips, actuators and AI software for Optimus, Samsung is positioning itself as both a component supplier to other robotics makers and a builder of its own branded robots for specific use cases. That dual strategy mirrors how Samsung dominates the smartphone market — as a component supplier to Apple Inc. and a handset maker itself.

The robotics push could add meaningful revenue by 2030, though the division is unlikely to contribute significant earnings before 2028, analysts said. Investors will watch for product demonstrations at the Consumer Electronics Show in January 2027, where Samsung is expected to showcase its first RX-branded prototype.

This article is for informational purposes only and does not constitute investment advice.