Samsung's 5th Year of 'AI Gilmok Technology' Research... Aiming to Lead 6G Standardization

Lee Jae-yong's Focus on 'Samsung's 6G'
First Step of the New Year Also Samsung Research
Possibility of Large-scale M&A Included

Samsung Electronics has marked its fifth year of research into sixth-generation mobile communication (6G) this year. Recently, with Samsung Electronics Chairman Lee Jae-yong making Samsung Research his first on-site visit of the new year, there are expectations that the company will put the pedal to the metal in securing technological leadership. There is also speculation about large-scale mergers and acquisitions (M&A) in the 6G-related fields to lay the foundation for new businesses that will lead the 'New Samsung.'

According to industry sources on the 15th, Samsung Electronics is strengthening related research with the primary goal of taking the lead in the 6G standardization process scheduled for next year. This involves behind-the-scenes efforts to reflect Samsung's opinions on frequencies and equipment standards before the commercialization of 6G.

To establish communication standards, the International Telecommunication Union (ITU), a United Nations (UN) agency, first defines technical requirements, after which organizations like 3GPP (3rd Generation Partnership Project) set the standards. Subsequently, through proposals and consensus among various organizations, new technologies are established as standards.

On the 10th, Lee Jae-yong, Chairman of Samsung Electronics, visited Samsung Research in Umyeon-dong, Seoul, and took a commemorative photo after holding a meeting with researchers. [Photo by Samsung Electronics]

Currently, Samsung Electronics holds the largest number of chair positions in the industry at 3GPP (2 chairs and 7 vice-chairs), leading international standardization. Additionally, through chair positions in the ITU's 6G framework working group and the frequency working group of the Global mobile Suppliers Association (GSA), Samsung actively incorporates the actual voices of major countries and the mobile telecommunications industry into the standardization and development of 6G communication technologies.

Samsung Electronics jumped into 6G research early in 2019. In 2021, Chairman Lee stated, "Communication infrastructure is as important as vaccines, and proactive investment is necessary to use it effectively when needed," adding, "We have had a team internally preparing for 6G for the past two years."

Samsung is accelerating 6G technology standardization because it is key to fostering various advanced technologies such as artificial intelligence (AI). Once commercialized, 6G is expected to achieve communication speeds approaching 1 Tbps (terabits per second). This speed allows transferring large data volumes of 125 gigabits (Gb) in just one second, up to 50 times faster than 5G. The number of devices that can connect to a single base station will increase by tens of times, enabling the Internet of Everything (IoE), which connects all things to the internet, surpassing the Internet of Things (IoT). Flying cars, fully autonomous vehicles, robot housekeepers, extended reality (XR) devices like Apple Vision Pro, and everyday AI assistants will all shine in the 6G era.

According to market research firm MarketsandMarkets, the global 6G market size is expected to grow from $5.1 billion last year to $40.2 billion by 2030, with an average annual growth rate of 34.2%.

Seunghyun Jun, head of Samsung Research, greeting at the 1st 'Samsung 6G Forum' held online by Samsung Electronics in 2022.
[Photo by Samsung Electronics]

The commercialization timeline for 6G is accelerating beyond the initially expected 2030. Technologies such as on-device AI, autonomous vehicles, robots, and urban air mobility (UAM) are increasingly penetrating daily life, causing a surge in data volume to be processed. Kim Hong-sik, a researcher at Hana Securities, explained, "On-device AI can significantly increase traffic," adding, "Along with autonomous vehicles, UAM could also prompt early adoption issues for 5G Advanced and 6G." Samsung began technical discussions for commercialization by holding a 6G forum with global experts last year and releasing a 6G frequency white paper.

As Samsung Electronics moves to secure technological leadership, attention is also focused on potential M&A targets this year. Samsung Electronics Vice Chairman Han Jong-hee mentioned large-scale M&A at CES 2024. The company has ample firepower, with cash assets amounting to approximately 93 trillion won as of the third quarter of last year.

Experts believe that M&A may focus more on strengthening capabilities in the equipment sector rather than 6G technology itself at this stage. An industry insider said, "Companies with 6G technology strong enough for M&A are currently rare," adding, "Besides pioneering 6G network development, investments may be made to enhance capabilities in the telecommunications equipment sector, which has a large market size."