Han Jong-hee shows confidence in tech giant's extensive global supply chain
Korea Herald Correspondent
LAS VEGAS -- As companies around the world scramble to assess the potential impact of the high-tariff policy pledged by US President-elect Donald Trump, Samsung Electronics is prepared to navigate the challenges thanks to its strong global supply chain management, the tech giant's CEO said Tuesday.
By leveraging its diversified production channels and AI technologies, the company will be able to absorb the impacts of the tariffs, Samsung Electronics Vice Chairman and co-CEO Han Jong-hee said at a press briefing at CES 2025, the world's largest tech show held in Las Vegas.
"The Trump administration is taking office and his big tariff pledge is emerging as a major issue. Samsung operates many factories worldwide, and our production is not concentrated in a single location," Han said in response to a question from The Korea Herald about the company's outlook and strategy regarding Trump's proposed tariffs.
"We excel in global supply chain management, from component sourcing and manufacturing to delivering products to customers. And when we integrate AI technology to further enhance the system, I believe we can absorb the potential impact and manage the challenges without significant issues."
During the press briefing, Han outlined Samsung's vision for robotics, which has been discussed as a key technology that will lead future industries at CES 2025. The tech giant recently announced it became the largest shareholder of Korean robotics startup Rainbow Robotics, and also announced the plan to start sales of its AI companion robot Ballie in May or June.
"As (Nvidia's founder and CEO) Jensen Huang said, when robotics meets AI, innovations will occur. Samsung Electronics cannot be considered fast in the robotics field and Tesla is leading," Han said. "But we have started investing, and are working for technological advancement, and also pursuing merger and acquisition for growth."
For a differentiated strategy tailored to Samsung Electronics' strength and vision, the company is developing its own proprietary AI to reduce reliance on external sources like OpenAI, Han added.
Samsung envisions robotics development across three key areas: manufacturing, retail and kitchen. When the company achieves enough technological advancements, it will tap into humanoid robots, the CEO explained.
When asked about China's aggressive push to carve out its share in the global TV market, the Samsung CEO, along with the company's TV chief, admitted there is pressure. But the officials underscored that the company's technological prowess in connectivity and AI will keep its competitive edge against the Chinese rivals.
“The increasing number of competitors means the emergence of new technological opportunities,” Han said. ”In the past, being the ‘world-first’ or ‘largest’ was enough to lead, but such achievements no longer resonate with consumers. Today, the focus is on the value and convenience a product can provide -- addressing pain points and differentiating through innovation.”
The CEO admitted Samsung’s preliminary earnings revealed on the day fell short of market expectations. But the company's Home AI platform, expanding the connected experience of electronic appliances, would serve as the key driver for earnings recovery, Han said.
The CEO also mentioned Samsung Electronics Chairman Lee Jae-yong's call to the employees to develop an "irreplaceable" product. The company is now preparing to debut the new product as early as the second half of this year.
“The ultimate goal for any company is to create an irreplaceable product. That’s the only way to justify price increases that customers will accept,” Han said. “The chairman has emphasized the importance of developing unprecedented technologies, and I believe we will be able to introduce the product in the second half of this year or early next year.”
As Samsung is starting an appliance subscription business in February, Han confirmed that Ballie will be available in the program as well as the company’s smartphones at a later date.
