AI over Semiconductors and Vaccines... Lee Jae-yong Launches 'New Samsung'

First Overseas Business Trip After Parole
Strategic Move to Strengthen Software Capabilities

Samsung Electronics Vice Chairman Lee Jae-yong is departing through the Gimpo Airport Business Aviation Center in Gangseo-gu on the 14th. Vice Chairman Lee is scheduled to visit Samsung Electronics' Artificial Intelligence (AI) research center in Canada, followed by a visit to the United States to make the final decision on the site for a new foundry (semiconductor contract manufacturing) plant in the U.S. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Heung-soon] Lee Jae-yong, Vice Chairman of Samsung Electronics, who was released on parole last August and has since begun actively pursuing overseas business activities, has drawn attention by choosing the artificial intelligence (AI) research center in Canada as his first business trip destination. The business community is closely watching Lee’s decision to fly to Canada, where Samsung Electronics’ AI research center is located, before addressing pressing issues such as semiconductor investment and COVID-19 vaccine supply, anticipating a stronger focus on enhancing capabilities in the software sector.

First Visit to Canada in 3 Years, First Destination Samsung Electronics AI Research Center

According to industry sources on the 15th, the chartered plane carrying Lee for his North American business trip departed Gimpo Airport the previous morning, heading to Toronto, Canada. Lee is scheduled to visit Samsung Electronics’ AI research centers located in Toronto and Montreal. Previously, in 2018, after being sentenced to prison in the National Pension Service scandal trial and then released on probation in the second trial, Lee also chose this location as his first overseas business trip destination.

During a 16-day North American and European business trip in March 2018, Lee engaged with global AI experts to grasp the latest trends and personally took part in recruiting key talents, demonstrating his commitment to fostering the AI business. Later that year, in October, he visited Canada again during additional trips to Europe and North America.

Since then, strategies to strengthen the AI business have been implemented. The establishment of AI research centers in Toronto and Montreal are representative examples. Samsung Electronics launched Samsung Research, an integrated research organization, in November 2017, creating an AI center under it. Since then, the company has expanded its AI research centers to seven locations, including Silicon Valley and New York in the U.S., Cambridge in the U.K., Toronto and Montreal in Canada, and Moscow in Russia.

Four Major Growth Engines, Core is AI
Likely Finalizing Site Selection for $20 Billion New Foundry Plant in the U.S.

In 2018, Samsung announced an investment plan worth 180 trillion won to prepare for the future, designating AI, bio, 5G, and automotive components as four major growth engines and declaring an investment of 25 trillion won in these fields alone. This plan is known to strongly reflect Lee’s determination to nurture new businesses. In particular, he focused on strengthening competitiveness in AI, which can be linked to Samsung Electronics’ core business sectors such as semiconductors, smartphones, and home appliances.

Samsung was also proactive in recruiting and collaborating with experts. Last year, Samsung Electronics appointed Seung Hyun-jun (Sebastian Seung), a globally recognized AI authority and professor at Princeton University, as the head of Samsung Research. Earlier, in November 2019, Lee met with Yoshua Bengio, a professor at the University of Montreal in Canada and one of the four major gurus in AI, to discuss Samsung Electronics’ AI strategy. At that meeting, Lee emphasized, "Let’s break the limits of our thinking and seize the future to realize even bigger dreams."

Subsequently, in October last year, Professor Bengio was appointed as a 'Samsung AI Professor,' and cooperation for AI research and development was expanded. Professor Bengio also serves as co-chair of the Samsung AI Forum, held annually by Samsung Electronics to discuss research directions with global AI scholars. Additionally, Lee met with global business leaders such as Satya Nadella, CEO of Microsoft, in November 2018, and Masayoshi Son, Chairman of SoftBank, in July 2019, to discuss cooperation in the AI field.

Recently, during Lee’s trial on allegations of violating the Capital Markets Act and the Financial Investment Services and Capital Markets Act, an English email was disclosed in which Lee confided in a person he met seven years ago about Samsung Electronics’ core business strategies and management directions. According to the email, in 2014, Lee met with Jim Sykes, then co-head of M&A at Goldman Sachs in the U.S., to discuss product differentiation from a hardware perspective, strategies for system semiconductors and foundry in the non-memory business, expansion of investment in software, and ongoing supply relationships with Apple. This also included strategies for software development such as AI and the Internet of Things (IoT).

An industry insider said, "Lee has been implementing plans he conceived long ago to strengthen the AI sector through investments and talent acquisition. Since AI-related schedules were prioritized during this overseas trip, we should closely watch for potential mergers and acquisitions (M&A) or large-scale investments related to this field in the future."

Meanwhile, after visiting Canada, Lee is expected to visit the United States. There, he is reportedly reviewing the site selection process for a new foundry (semiconductor contract manufacturing) plant, in which Samsung Electronics plans to invest $17 billion (approximately 20 trillion won). Before departure, he stated, "I plan to meet with several U.S. partners."

Currently, Taylor City in Texas is considered the leading candidate for the new foundry plant site. Austin City, where the existing foundry plant is located, is also under consideration. It is anticipated that Samsung Electronics will finalize the site selection after Lee’s visit. When asked by reporters whether he plans to meet with Moderna officials regarding vaccine supply during this trip, Lee replied, "I think I will also go to Boston," where Moderna’s headquarters is located.