Key Takeaways:
The Chairman of Samsung Electronics, Lee Jae-Yong, met with the heads of Meta, Qualcomm, and Amazon during his two-week trip to the United States to discuss cooperation and explore business opportunities in artificial intelligence, cloud computing, and chips.
Lee was accompanied by Vice Chairman Jun Young-Hyun, who heads Samsung’s semiconductor arm; President Lee Jung-Bae, its memory business chief; and Executive Vice President Han Jin-Man, who heads the tech behemoth’s chip division in the US.
Samsung Chair Discuss Collaboration in AI and Mixed Reality Tech With Zuckerberg
On June 11th, Meta CEO Mark Zuckerberg invited Lee to his home in Palo Alto, California, where they discussed possible collaborations in developing AI models as well as virtual and augmented reality technology.
Reports are surfacing that Samsung and Meta could work together to develop Meta’s own microchip designed for accelerating the training of its AI models. However, the Korean giant declined to confirm the rumors.
During his visit to Seoul in February, Zuckerberg mentioned that with Samsung onboard as a contract chipmaker, Meta could reduce its over-reliance on the Taiwan Semiconductor Manufacturing Company (TSMC) – the world’s largest semiconductor foundry and most valuable chip manufacturer.
After their meeting, Zuckerberg was quoted saying that Samsung holds an important position in the global economy, the factors of which can serve as critical points in initiating a partnership between the two tech giants.
While no deal is concrete as of now, Meta announced a strategic partnership with Samsung’s chief rival LG in February for developing mixed reality headsets. However, LG recently started scaling down the project due to concerns over its scalability and marketability.
This could be a reason why Meta is looking to partner with Samsung to continue developing VR and AR gadgets. Although there is no deal in place between the two companies, Samsung is working alongside Google and Qualcomm to develop its own line of mixed-reality headsets.
Samsung and Amazon to Strengthen Partnership in Generative AI and Cloud Computing
Lee also met with Amazon CEO Andy Jassy at the company’s headquarters in Seattle, where they discussed possible new partnerships and shared market prospects in generative AI and cloud computing.
While Samsung didn’t detail the points of discussion, the company did state that the American tech juggernaut is a top client of its memory chip business, which is widely used to power Amazon’s data centers across the world. The two firms also work together in other areas such as TV, mobile, and content.
Qualcomm and Samsung Expand Partnership to Develop AI Computer Chips
On June 10th, Lee and his associates met with Qualcomm CEO Cristiano Amon, where they discussed continued cooperation in developing advanced, next-generation AI and telecommunication chips.
Qualcomm supplies mobile processors for Samsung’s premium Galaxy series smartphones. Recently, the two chip tech giants expanded their partnership to AI-powered personal computers.
The Samsung executives also had a meeting with Verizon CEO Hand Vestberg, discussing possible cooperation related to sales of the upcoming Galaxy line of smartphones. The company is gearing up for the July release of the Galaxy Z Fold 6 and Galaxy Z Flip 6 – its premium foldable smartphones.
Samsung is Realigning its Key Businesses as a Result of Disappointing 2023 Performance
Lee’s US trip comes during a critical time for Samsung. The company has lost some ground to its competitors in the chip-making sector, especially high-end memory that enables AI data processing. Its newly appointed head of the semiconductor division has called on staff to pull together and deliver results.
In March, Samsung issued a directive ordering top executives to work 6 days a week. This came after the electronics giant posted its worst earnings year in over a decade in 2023, Last year, the company’s operating profits plunged 85% to $4.7 billion and net profit dropped 72% to $11.24 billion.
Samsung Semiconductor, which accounts for 80% of the Korean conglomerate’s entire business and is the third-largest chip maker in the world, recorded a $11 billion loss in 2023. The company also briefly lost the top spot in the global smartphone market to its main rival Apple.
Samsung managed to claw back first place by shipping 60.1 million units of the Galaxy series smartphones in Q1 2024, compared to 50.1 million iPhones delivered to customers by Apple during that period. The company commands 20.8% of the global smartphone sales.
The South Korean electronics giant will hold a company-wide strategy meeting towards the end of June, bringing together CEOs of its chip, home appliances, and smartphone businesses. Lee will detail the discussions he had with the heads of Meta, Qualcomm, and Amazon during the meeting to develop tangible plans for Samsung.
More News: Samsung Is Bringing Foldable-Specific AI Features To The Galaxy Z Fold 6 And Z Flip 6
