DIC Bets $62M on Physical AI, Pivoting from Materials to Robotics

TOKYO, Japan – February 16, 2026 – In a decisive move that signals a major strategic pivot, Tokyo-based materials science leader DIC Corporation has announced a $62 million investment portfolio to accelerate its entry into the burgeoning 'Physical AI' domain. The initiative is anchored by a strategic partnership with Emerald Technology Ventures, a global venture capital firm based in Switzerland, and includes plans to establish a dedicated startup investment subsidiary in Zurich by spring 2026.

This investment marks a significant expansion for the company, known for its deep roots in pigments and specialty chemicals, as it ventures into the high-growth technology sector where artificial intelligence intersects with the physical world. The fund will target global startups developing technologies in sensors, wearables, robotics, and automation, aiming to build a portfolio of companies that are redefining human-machine interaction.

A Strategic Pivot from Materials to Intelligent Machines

For over a century, DIC Corporation has built its reputation on materials innovation, guided by its vision of providing “Color & Comfort.” This new initiative represents a calculated evolution, leveraging its foundational expertise in advanced materials to capitalize on the next wave of technological disruption. The move is a cornerstone of DIC’s “Direct to Society (D2S)” business framework, a corporate strategy designed to anticipate future societal needs and transform innovative ideas into commercially viable solutions.

The investment in Physical AI aligns directly with the D2S framework’s goal of creating both economic and social value. By collaborating with agile startups, DIC aims to fast-track the development of technologies that enhance productivity and quality of life, from smart sensing solutions to soft robotics that can work alongside humans. This pivot is also a key component of the company's long-term 'Vision 2030' plan, which prioritizes the creation of next-generation businesses in high-growth areas like “chemitronics”—the fusion of chemicals and electronics.

“For many years, DIC has been committed to addressing social imperatives through materials innovation,” said Takashi Ikeda, President and Group CEO of DIC, in a statement. “Physical AI has the potential to transform the way people interact with technology in a more natural and intuitive manner. Our partnership with Emerald is a major step in securing world-class expertise and networks that will help us deliver new value to society.”

The Rise of 'Physical AI' and the Digital-Physical Bridge

Physical AI represents a paradigm shift, moving artificial intelligence beyond digital screens and into the tangible world. These systems employ a continuous loop of sensing, deciding, acting, and learning to interact directly with their environment. The market is expanding at a blistering pace, with analysts projecting it to surge from approximately $4.12 billion in 2024 to over $61 billion by 2034, reflecting a compound annual growth rate (CAGR) of over 31%.

This explosive growth is driven by increasing demand for automation in manufacturing, logistics, and healthcare, coupled with rapid advancements in AI models, edge computing, and sensor technology. The applications are vast and transformative:

• Robotics: Collaborative robots (cobots) working safely alongside factory workers, autonomous mobile robots streamlining warehouse logistics, and sophisticated humanoid robots performing complex tasks.
• Healthcare: AI-powered wearable sensors for remote patient monitoring, robotic systems assisting in complex surgeries, and intelligent devices aiding in physical therapy and rehabilitation.
• Smart Living: Wearable technology that intuitively responds to human movement and environmental conditions, enhancing personal well-being and safety.

DIC’s investment is timed to capitalize on this high-velocity innovation cycle. The company's deep knowledge of materials science provides a unique advantage, as the development of advanced polymers, flexible electronics, and specialty composites is critical for creating next-generation sensors and soft robotics.

Zurich: Europe's Emerging Deep-Tech Powerhouse

The decision to establish DIC’s startup investment subsidiary in Zurich is a strategic masterstroke. Far from being a simple administrative choice, it places the company at the epicenter of one of Europe’s most dynamic deep-tech innovation hubs. Zurich's ecosystem is anchored by world-class academic institutions, most notably ETH Zurich, a global leader in science, technology, engineering, and mathematics.

ETH Zurich’s AI Center acts as a powerful incubator for AI startups and a magnet for top-tier talent, fostering an environment where groundbreaking research quickly translates into commercial ventures. The region boasts the highest density of core AI talent in Europe and has attracted major R&D hubs for global tech giants like Google, Microsoft, NVIDIA, and Boston Dynamics. By planting a flag in Zurich, DIC gains direct access to this rich ecosystem of startups, researchers, and industrial partners, enabling it to accelerate deal sourcing and gather critical market intelligence.

The proximity to its partner, Emerald Technology Ventures, further solidifies this strategic positioning, allowing for seamless collaboration on joint initiatives and investment decisions.

Forging the Future with Strategic Venture Capital

Partnering with Emerald Technology Ventures provides DIC with more than just capital; it offers a gateway to specialized expertise and a curated global network. With over €1 billion in assets under management, Emerald has a proven track record of financing industrial technology and sustainability-focused innovation. Its team, composed of specialists with deep technical backgrounds, is adept at identifying and nurturing high-potential deep-tech companies.

“Physical AI represents the next wave of innovation, enhancing human capability through intelligent systems,” noted Gina Domanig, Managing Partner and CEO of Emerald. “By partnering with DIC, we aim to translate emerging technologies into practical, human-centered solutions and support the long-term growth of pioneering startups.”

This corporate venture model is part of a larger industry trend where established industrial giants are turning to partnerships and investments to stay ahead of the curve. Companies like BMW and Hyundai have already made significant moves by partnering with robotics startups Figure and Boston Dynamics, respectively. DIC's initiative follows this pattern but with a unique focus on leveraging its materials science DNA.

Over the next five years, DIC aims to build a diversified portfolio of innovative companies that will create future strategic options for the corporation. This collaboration is designed not just to fund innovation, but to fundamentally reshape how intelligent systems integrate into the fabric of daily life and industry.