According to Zhitong Finance, Samsung Electronics (SSNLF.US) is increasing its investment in AI aimed at Consumer Electronics, betting on various electronic products from Smart Phones to Televisions to secure a position in the AI field. Samsung's CEO Han Jong-Hee stated during an interview at the Consumer Electronics Show (CES) in Las Vegas that Samsung relies on its unique market position not only in the mobile device sector but also in home appliances such as Refrigerators and Washing Machines. The company aims to better connect the 0.5 billion devices it sells each year to help compensate for its missteps in high-end memory and generative AI sectors.

The stock price of this South Korean company with the highest Market Cap fell by a third in 2024, as it failed to close the gap with its competitor SK Hynix in the sales of advanced memory for AI accelerators. NVIDIA's (NVDA.US) high-bandwidth memory chips HBM have yet to be approved, leading to a loss of investor confidence, despite its Smart Phone division performing strongly this year. At CES, Samsung highlighted its advantages in Smart Home technology.

Unlike competitors such as Apple (AAPL.US), Amazon (AMZN.US), and Google's (GOOGL.US) Alphabet, Samsung's home connection hub is directly integrated into the appliances purchased by consumers.

Under the leadership of Han Jong-Hee, the company has been installing AI chips in Refrigerators, Washing Machines, and robotic vacuum cleaners. Han Jong-Hee stated, "Ultimately, our goal is to create new products that people have never experienced before."

Han Jong-Hee is widely recognized as the reason Samsung has maintained its position as the world's largest Television seller for nearly 20 years. Samsung also announced a new AI initiative for Televisions, which will compete with Google's TV software, offering real-time translation, content analysis, and audio and video enhancement features.

Han Jong-hee shares leadership responsibilities with Vice Chairman, Head of Equipment Solutions (DS) Department, and Semiconductor Head Jeon Young-hyun. Jeon Young-hyun will officially serve as Co-CEO starting in March, overseeing the company's key semiconductor business. Han Jong-hee is responsible for all other matters of this large Consumer Electronics manufacturer, but he fully hopes that Samsung's chip division can get back on track this year.

AI is the largest part of Samsung's R&D spending outside of Semiconductors, and Han Jong-hee plans to significantly increase investments in this area this year and beyond. He declined to disclose Samsung's specific spending but mentioned that the company is purchasing graphics cards from NVIDIA and AMD (AMD.US) to build several major datacenters in South Korea.

Samsung's SmartThings platform – which provides connectivity between Smart Phones, Televisions, and other home devices – now has 0.37 billion users and has grown at a rate of 20% annually over the past three years. Starting this year, Bixby voice assistant will be able to recognize family members and provide personalized experiences.

The overall Consumer Electronics industry is expected to grow by about 3% this year, and Han Jong-hee expects Samsung to perform better. Looking at the company's current product line, Han Jong-hee noted that the focus is on Siasun Robot&Automation, Medical technology, and Autos to generate new growth. As part of these efforts, Samsung has acquired and invested in a range of startups over the past year.