Lee Jae-yong's Piercing Question "Is It Our Proprietary Technology? How Far Ahead Are We?" (Comprehensive)

On the Eve of IFA Closing, Reviewing AI Home Appliance Roadmap
Intent to Reorganize 'Supergap Global Leadership' Frontline

Samsung Electronics Chairman Lee Jae-yong visited the company's home appliance division on the 9th to review the future competitiveness of AI appliances. This move, coming just one day before the closing of the ‘Berlin International Consumer Electronics Fair (IFA) 2024,’ Europe’s largest home appliance and IT exhibition celebrating its 100th anniversary, is interpreted as an effort to reorganize and strengthen the company’s stance.

Lee Jae-yong, Chairman of Samsung Electronics

According to business circles on the 10th, Chairman Lee visited Suwon Digital City the previous afternoon, where he had lunch with key executives including Han Jong-hee, Vice Chairman and Head of the Device Experience (DX) Division and the Home Appliance Business Division, and then spent about an hour and a half inspecting core components and future technologies of home appliances.

This was Chairman Lee’s first visit to the home appliance division this year. On that day, he toured the AI-based product and technology exhibition space and reviewed the development roadmap for core technologies of strategic products. While listening to explanations about each technology, he reportedly asked sharp questions such as, "Is this our proprietary technology?" "How far ahead are we?" and "What is the momentum behind developing this technology?"

He showed particular interest in the progress and future application plans of the product standardization project underway to enhance manufacturing competitiveness. He was also briefed on the status of competitors by sector and major companies by region, and reviewed the AI appliance strategy. Attendees agreed to strive to secure ‘super-gap global leadership’ through innovation in user experience and early acquisition of future technologies.

The industry interprets this move as related to the situation at this year’s IFA, where Chinese companies showcased their technological prowess. China dominated the exhibition space with the largest scale among participating countries this year and was evaluated as having moved beyond its previous image of competitiveness based on cost-effectiveness to now also possessing strong technological capabilities. The exhibition halls of TCL and Hisense, which fiercely chase Samsung Electronics?the global No. 1 in TV market share?were crowded with visitors throughout the event. TCL prominently featured its ‘Quantum Dot (QD) Mini LED TV,’ exhibiting the world’s largest 115-inch Quantum Dot Mini LED TV and claiming to be the No. 1 in the large TV market share. Hisense also showcased rollable TVs, 3D TVs that can be viewed without glasses, and screen laser TVs. The 8K resolution screen laser TV was the world’s first. Honor unveiled its foldable smartphone ‘Magic V3,’ emphasizing that it is thinner than Samsung Electronics’ foldable smartphones.

Chairman Lee’s visit to the home appliance division appears to be closely related to this situation. Samsung Electronics is positioning this year as the inaugural year of AI appliances and is solidifying the formula ‘AI appliances = Samsung.’ Earlier, in March, Chairman Lee visited the Visual Display (VD) division and watched a demonstration of the yellow ball-shaped AI companion robot ‘Bolly,’ then instructed, "Please consider ways to link it with Galaxy wearable products," adding, "I hope it includes functions for elderly people living alone."

Samsung Electronics plans to embed screens in all appliances to be released in the future and focus on transforming the customer usage experience paradigm into AI-based intelligent appliances. Vice Chairman Han recently stated at the ‘IFA 2024’ press conference, "We have reached a situation where AI-connected devices exchange data and become hyper-personalized," adding, "We will encompass connected experiences across all products including mobile, TV, and home appliances." He also emphasized the importance of security. When asked about Chairman Lee’s demands for the DX division, Vice Chairman Han conveyed, "He requires differentiated products, products that consumers recognize and appreciate."

Chairman Lee is expected to accelerate on-site management by sequentially visiting other business sites soon. During the Chuseok holiday, as in previous years, he is likely to visit overseas business sites to inspect local operations and encourage employees who are away from their families.