Samsung Chairman Lee visits Germany, stirs expectations

Industry

Published: 09 Aug. 2023, 16:05 Updated: 09 Aug. 2023, 18:05

Samsung Chairman Lee visits Germany, stirs expectations

Samsung Electronics Chairman Lee Jae-yong enters a hotel in central Seoul in June. Lee is currently on a family vacation in Germany. [YONHAP]

Samsung Electronics Chairman Lee Jae-yong is visiting Germany to strengthen the company’s foothold in the automotive electronics business.

Lee reportedly visited Canada for a family vacation with his son and daughter, who are studying in the United States, before he flew to Germany. Although few details were disclosed about the purpose of his visit, eyes are on how Samsung's top executive will use his time in Germany to map out the company's business plan moving forward.

Lee is staying in Munich, where “Industrie 4.0” (I40), a national strategic initiative from the German government that aims to shape an industry fit for future manufacturing, originated. I40 seeks to integrate cyber-physical systems and Internet of Things services to enhance efficiency and productivity in manufacturing.

The southern German city is also the home ground for carmaker BMW, chip supplier Infineon and Samsung’s long-time tech ally Siemens. Industry sources expect Lee to conceptualize strategies for smart factories and manufacturing innovation.

Lee could meet with leaders of German carmakers to discuss cooperation on semiconductors used in cars. Establishing new ties and improving existing ones will fuel Samsung’s drive to develop the automotive electronics business into a future growth engine.

Samsung Electronics Chairman Lee Jae-yong, left, meets with BMW CEO Oliver Zipse at a BMW driving center in Incheon on Dec. 17, 2022. [SAMSUNG ELECTRONICS]

Harman, a car audio and component manufacturer spearheading Samsung’s automotive electronics business, operates a Harman Kardon production plant in Germany. Lee is expected to inspect local operation sites in tandem with the preparations for the IAA Mobility 2023 exhibition, where Samsung plans to open a booth for the first time.

Samsung Electronics' Device Solutions division and Samsung Display will showcase next-generation car chips and OLED (organic light-emitting diode) panels at the international mobility event to be held in Munich from Sept. 5 to 10.

A meeting with BWM CEO Oliver Zipse, a long acquaintance of Lee, could be arranged during Lee’s visit. BMW’s all-electric i7 sedans are equipped with Samsung SDI’s P5 batteries.

Samsung SDI is an EV battery maker 19.58 percent owned by Samsung Electronics.

Lee could also meet with German Chancellor Olaf Scholz to discuss Samsung’s investment in Germany, although the company declined to confirm details.

Lee’s last known visit to Germany was in June 2022 which was followed by his emphasis on the unrivaled importance of technology upon his return to Korea.

Germany is where the late Samsung Group Chairman Lee Kun-hee demanded employees “change everything except your wife and kids” to embrace the rapidly changing business at Kempinski Hotel Frankfurt 30 years ago.

BY KO SUK-HYUN [sohn.dongjoo@joongang.co.kr]