Discussion of Automotive Electronics Collaboration Centered on SDI at Seungjiwon Dinner
Battery Partnership Highlighted as Mercedes-Benz Expands Electric Vehicle Lineup
Potential for Comprehensive Collaboration in Automotive Electronics Business
On the evening of November 13, Samsung Electronics Chairman Lee Jae-yong met with Ola Kallenius, Chairman of Mercedes-Benz, at Seungjiwon in Hannam-dong, Seoul, to discuss future mobility cooperation, including electric vehicles and automotive electronics components. Industry observers note that as discussions around electric vehicle battery collaboration, centered on Samsung SDI, become more concrete, the partnership between the two companies appears to be entering a new phase.
Choi Joosun, President of Samsung SDI, and Christian Sobottka, President of Harman, also attended the dinner, where they reportedly reviewed ways to expand cooperation, focusing on specific businesses such as batteries and automotive semiconductors. Samsung and Mercedes-Benz are expected to not only strengthen their existing partnership in automotive electronics, including semiconductors and displays, but also broaden the scope of their collaboration to encompass next-generation electric vehicle batteries and autonomous driving technologies, covering the entire future mobility sector.
As Mercedes-Benz accelerates the expansion of its electric vehicle lineup, the importance of high-performance batteries is increasing, drawing attention to the potential for collaboration with Samsung SDI, which possesses technological competitiveness.
Harman, which was acquired by Samsung in 2016, has been supplying core automotive electronics solutions to global automakers, including Mercedes-Benz. As a result, there is speculation that this meeting could lead to expanded business opportunities. An industry insider stated, "This meeting is making the scope and nature of cooperation between the two companies more concrete."
Chairman Lee has long regarded batteries and automotive electronics-core components of the future mobility industry, such as electric and autonomous vehicles-as key growth pillars for Samsung, and has focused on nurturing related businesses. Strengthening networks with global automakers and expanding the foundation of the automotive electronics business are part of the same strategy.
This meeting between Chairman Lee and Chairman Kallenius comes about eight months after their previous encounter at the China Development Forum held at Diaoyutai in Beijing in March. Previously, in 2020, Lee met with Chung Euisun, then Executive Vice Chairman of Hyundai Motor Group, at the Samsung SDI Cheonan plant to review the development of solid-state batteries and discuss potential collaboration.
In 2023, Lee met with Elon Musk, CEO of Tesla, in the United States to explore directions for cooperation. In 2022, he met with Oliver Zipse, Chairman of BMW, at the BMW Driving Center in Yeongjongdo, Incheon, to discuss strengthening collaboration, and in March this year, he visited BYD headquarters in China and met with Lei Jun, Chairman of Xiaomi, confirming potential cooperation with Chinese electric vehicle companies.
Chairman Lee has also focused on inspecting the technological competitiveness of development and production sites of both domestic and overseas affiliates. He has regularly visited Samsung SDI's major domestic sites as well as plants in Hungary and Malaysia to check the status of advanced battery production. In October last year, he visited the Samsung Electro-Mechanics multilayer ceramic capacitor (MLCC) plant in the Philippines to review the production status of automotive MLCCs.
These efforts to build networks and advance technology are yielding tangible results. In 2023, Samsung SDI signed a contract with Hyundai Motor Company to supply next-generation electric vehicle batteries for the European market from 2026 to 2032.
Collaboration with Tesla has also expanded, with Tesla announcing in July this year that it will produce its autonomous driving semiconductor AI6 at Samsung Electronics' Taylor plant in Texas, confirming a major foundry (semiconductor contract manufacturing) agreement. Samsung Electro-Mechanics began large-scale supply of automotive MLCCs to BYD about a month after Chairman Lee's visit to BYD.
If the electric vehicle and automotive electronics cooperation between Samsung and Mercedes-Benz becomes more concrete, it is expected to provide a new growth opportunity for Samsung's automotive electronics business. Samsung SDI is recognized for its technological prowess in prismatic batteries and 46mm cylindrical batteries, and its solid-state battery technology is considered among the industry's best. If Samsung SDI establishes a next-generation battery supply chain with Mercedes-Benz, it will secure all three major German premium automakers-Mercedes-Benz, BMW, and Audi-as clients.
Harman has supplied the digital cockpit (MBUX) installed in the Mercedes-Benz EQS model and has been providing core automotive electronics solutions to global automakers. With strengths in high-end audio, advanced infotainment systems, digital cockpits, advanced driver-assistance systems (ADAS), and telematics, comprehensive synergy is expected from integrated automotive electronics cooperation with Samsung.
Since the 2010s, Samsung has fostered the secondary battery business, including electric vehicle batteries, as a new growth engine, signing supply contracts with BMW, Volkswagen, Stellantis, and others. In 2015, Samsung established the automotive electronics business team, and in 2016, it acquired Harman for 9.4 trillion won, making the automotive electronics business a core pillar for future growth. In 2024, Samsung Electronics reorganized the automotive electronics business team into the Harman Cooperation Team to strengthen its capabilities in this sector.
Samsung Electronics aims to secure competitiveness in key automotive electronics areas, such as autonomous driving system semiconductors (SoC), by applying its semiconductor and ICT display technologies to vehicles. By integrating the technologies of affiliates-such as Samsung Display's automotive OLEDs, Samsung SDI's batteries, and Samsung Electro-Mechanics' MLCCs-the company plans to expand its market leadership in the automotive electronics business. An industry insider commented, "This meeting at Seungjiwon is seen as a step that further concretizes the potential for collaboration between Samsung and Mercedes-Benz within Samsung's automotive electronics strategy."
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