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iRobot's Fall: Chinese Subsidies Cripple Roomba Maker
22 Dec
Summary
- iRobot, maker of the Roomba, filed for bankruptcy protection in December 2025.
- China's subsidies created a protected market for competitors like Roborock.
- An attempted acquisition by Amazon was blocked by antitrust regulators.
iRobot, the creator of the Roomba robotic vacuum, filed for Chapter 11 bankruptcy protection in December 2025, signaling the end of an era for the pioneering robotics company. Founder Colin Angle attributed the company's struggles significantly to a new wave of Chinese competitors who benefited from substantial government subsidies.
Angle explained that these subsidies fostered a "protected market" for Chinese manufacturers, allowing them to rapidly innovate and challenge iRobot's dominance. Companies such as Roborock, Ecovacs, and Dreame leveraged this environment, outpacing iRobot, which had once led the market and even briefly held the top position in China. Despite reaching peak revenue in 2021, iRobot faced mounting pressure from these well-supported rivals.
Further complicating matters, an intended acquisition by Amazon for $1.4 billion was terminated in 2024 following a lengthy antitrust review by the Federal Trade Commission and European regulators. This ultimately left iRobot in a precarious position, serving as a stark warning about the challenges facing US manufacturing in a globally competitive landscape.
