Vice Chairman Han Reserved Comments on Large-Scale M&A... "M&A Activation Helps Strengthen Competitiveness"
Han Jong-hee, Vice Chairman of Samsung Electronics, is speaking at the 17th Electronics IT Day ceremony held on the 5th at COEX in Seoul as the Chairman of the Korea Electronics and Telecommunications Industry Promotion Association. [Image source=Yonhap News]
[Asia Economy Reporter Kim Pyeonghwa] On the 4th, Samsung Electronics Vice Chairman Lee Jae-yong met with SoftBank Group Chairman Masayoshi Son to discuss cooperation plans related to the semiconductor intellectual property (IP) company ARM. Meanwhile, Han Jong-hee, Vice Chairman and Head of Samsung Electronics' DX Division, made remarks regarding mergers and acquisitions (M&A) on the 5th. While he was reserved about large-scale M&A plans including ARM, he expressed a positive stance on the overall activation of M&A.
On the 5th, Han visited the 'Korea Electronics Show (KES) 2022' held at COEX in Gangnam-gu, Seoul, in his capacity as Chairman of the Korea Electronics and Telecommunications Industry Promotion Association. At this event, Han told reporters that it was "difficult to comment due to confidentiality" when asked about large-scale M&A plans. Given the high attention on ARM following the meeting between Vice Chairman Lee and Chairman Son, he made cautious remarks.
Earlier, on the 4th, Vice Chairman Lee met with Chairman Son and related executives at Samsung Electronics' Seocho building. ARM CEO Rene Haas was also present. Since Chairman Son had previously stated his intention to discuss strategic cooperation between Samsung Electronics and ARM, it is reported that ARM-related matters were discussed during the meeting. However, as predicted by the market, specific issues such as ARM acquisition or equity investment were not discussed.
Han showed a positive attitude toward the activation of domestic M&A. He said, "M&A must be activated for mutual growth and competitiveness." At a press conference during CES 2022 held in Las Vegas, USA, in January, he also expressed expectations regarding M&A by saying, "Good news will come soon."
Meanwhile, when asked about cooperation with LG Display on organic light-emitting diode (OLED) technology, Han replied, "There is potential." He made similar remarks keeping the possibility open at IFA 2022 held in Berlin, Germany, last month.
At the opening ceremony of KES 2022 held that morning, Han emphasized that the industry is facing a complex crisis. He pointed out ongoing financial market instability and concerns about economic slowdown, as well as declining global demand for key products such as semiconductors, mobile phones, and TVs, stressing the need for innovation that surpasses these limitations.
He said, "We must adopt digital transformation as a survival strategy, actively introduce innovative technologies such as big data, artificial intelligence (AI), and the Internet of Things (IoT), and turn this into an opportunity to create demand by providing new experiences and services."
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