The landmark transaction reflects the growing convergence of AI and industrial automation, signaling a new phase for the global robotics industry.

Zurich / Tokyo — October 8, 2025 — In a bold move that could redefine the future of industrial technology, Swiss engineering giant ABB Group has announced an agreement to sell its robotics division to Japan’s SoftBank Group for a staggering $5.375 billion. The deal marks one of the largest transactions in the global automation sector in recent years and underscores how artificial intelligence (AI) is rapidly transforming the robotics industry.

According to ABB, the transaction — still subject to regulatory approvals — is expected to close by mid to late 2026. Once completed, ABB will discontinue its earlier plan to spin off the robotics unit for an independent listing. Instead, the company will redirect the proceeds to strengthen its financial position, reward shareholders, and accelerate innovation in its electrification and automation core businesses.

Strategic Shift: From Diversification to Deep Focus

The sale signals a significant shift in ABB’s corporate strategy. By divesting its robotics arm, ABB aims to sharpen its focus on the high-growth sectors of industrial electrification, process automation, and digital transformation.

ABB’s Chairman Peter Voser described the transaction as a “strategic milestone,” emphasizing that SoftBank’s proposal reflected “the long-term strength and potential of ABB’s robotics business.”

“This deal not only recognizes the enduring value of our robotics technology but also delivers immediate value to shareholders,” Voser said. “ABB remains committed to its vision — driving sustainable progress through innovation in electrification and automation.”

The robotics unit, with around 7,000 employees worldwide, generated $2.3 billion in revenue in 2024, accounting for about 7% of ABB’s total income with an EBITA margin of 12.1%. Its products and solutions are widely used across automotive manufacturing, logistics, metals, and electronics — industries that are rapidly adopting automation.

SoftBank’s AI Vision: From Virtual to Physical Intelligence

For SoftBank Group, led by founder and CEO Masayoshi Son, the acquisition is a crucial piece in its grand vision of “Physical AI” — the next evolution of artificial intelligence that merges digital cognition with real-world action.

“The next frontier for SoftBank is Physical AI,” Son said. “By combining ABB’s world-class robotics technology with our deep capabilities in artificial intelligence, computing, and data, we aim to create a new generation of intelligent machines that learn, adapt, and interact with the physical world. This is how we move closer to the era of Artificial Super Intelligence (ASI).”

SoftBank, known for its strategic investments in technology pioneers such as ARM and Boston Dynamics, sees the integration of AI and robotics as a defining theme of the next decade. The company plans to leverage ABB’s strong engineering base and its presence in industrial markets to accelerate the commercialization of AI-powered robots.

Financial and Structural Implications for ABB

As part of the divestment, ABB will reorganize its corporate structure into three primary divisions starting in Q4 2025. Its Machine Automation business (B&R), currently under the Robotics and Discrete Automation segment, will merge into the Process Automation division.

The transaction is expected to result in approximately $2.4 billion in pre-tax non-operational gains, while net cash proceeds are estimated at around $5.3 billion after costs. ABB expects associated one-time expenses of about $200 million, with roughly half already reflected in its 2025 guidance.

Industry analysts believe ABB’s decision aligns with its broader capital allocation principles — focusing resources where it has the highest competitive edge. “ABB is essentially saying: we’ll lead in automation and electrification, but robotics is entering a new AI-driven phase that’s better suited to SoftBank’s ecosystem,” commented a Swiss-based industrial analyst.

Redefining the Global Robotics Ecosystem

This acquisition comes at a pivotal moment for the global robotics industry. Automation demand has surged in recent years, driven by labor shortages, digital transformation, and the push for operational resilience following global disruptions. The integration of AI is accelerating this momentum, transforming robots from mere executors of repetitive tasks into adaptive, data-driven systems capable of self-learning and decision-making.

With SoftBank’s expertise in AI algorithms, cloud infrastructure, and semiconductor technology, ABB’s former robotics unit could become a powerhouse of intelligent automation. Analysts expect new synergies across industries such as automotive assembly, logistics, healthcare robotics, and precision manufacturing.

“SoftBank’s acquisition of ABB Robotics could catalyze the birth of an AI-native industrial platform,” said Dr. Hiroshi Watanabe, a robotics researcher in Tokyo. “This is not just a business deal — it’s the start of an AI-industrial convergence era.”

A Broader Trend: AI Meets Manufacturing

The ABB-SoftBank deal reflects a broader global trend: AI is becoming the foundation of modern manufacturing. From predictive maintenance to human-machine collaboration, the future of production is defined by intelligence, not just automation.

According to the International Federation of Robotics (IFR), global robot installations are expected to exceed 800,000 units per year by 2030, with AI-enabled robots accounting for a growing share of that total.

SoftBank’s move positions it at the center of this transformation, while ABB’s capital optimization ensures long-term stability and flexibility for future innovation. Both companies are effectively betting on the same vision — that the next industrial revolution will be powered by intelligent, learning machines.

Outlook: Two Giants, One Future

For ABB, the divestment provides strategic clarity. With robotics off its books, the company can channel more investment into digital energy management, process automation, and industrial electrification — all critical components of the global sustainability transition.

For SoftBank, the acquisition strengthens its technological portfolio, giving it tangible access to the industrial sector. The fusion of AI, robotics, and data-driven control systems could transform not only factories but entire value chains, from logistics to customer service.

As markets digest the news, the deal is already being hailed as a “turning point” in the evolution of robotics. By bridging industrial engineering with artificial intelligence, ABB and SoftBank may have just set the template for what the future of smart manufacturing looks like.