The rivalry between Samsung and LG reached new heights at CES 2025, as both tech giants unveiled ambitious plans to dominate emerging markets, including appliance subscriptions, robotics, and AI-driven innovations. The competition between thes South Korean conglomerates is not just about products—it’s about shaping the future of consumer technology.
Expanding Subscription Services: A New Battleground
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Samsung Electronics CEO and Vice Chairman Han Jong-hee announced the company’s plans to expand its home appliance subscription business to include smartphones and other upcoming products. “As we have belatedly started our product subscription business, the focal point will be about expanding the range of choice for customers,” Han said during a press conference. He added, “Though we are a latecomer, our subscription business is showing enormous growth, and several new models will be coming into the subscription programme, so you can expect our subscription business to hit its stride.”
Samsung’s subscription service, launched last month, initially offered AI-embedded TVs, refrigerators, washers, and vacuums. Now,the company is set to include its Galaxy smartphones and ballie,an AI-powered home robot,in the program. This move directly challenges LG Electronics, which has already established a strong foothold in the subscription market. In 2024, LG’s subscription business generated 2 trillion won ($1.37 billion), marking a 75% increase from the previous year.
LG Electronics CEO Cho Joo-wan responded to Samsung’s announcement with optimism. “There will be competition,” he said, “but I’m viewing it in an optimistic way because the market will expand.” Cho emphasized LG’s unique advantage: “Our clear strength is that we have over 5,000 care managers, each of whom is an expert in caring for subscribed appliances. Subscription isn’t simply an installment plan—it is indeed about care. Our strength comes from the expertise, network, and experience of our care managers.”
Robotics: The Next Frontier
The competition between Samsung and LG extends beyond subscriptions into the burgeoning field of robotics. Both companies confirmed that thier AI home robots—Samsung’s Ballie and LG’s Q9—will hit the market this year.These robots are designed to integrate seamlessly into smart homes,offering personalized assistance and automation.
During their respective press conferences, both CEOs highlighted the importance of robotics in their future strategies. Han Jong-hee noted that Samsung’s recent investment in a robotics subsidiary reflects the company’s commitment to advancing humanoid technology. “The global industry’s plans for humanoids are picking up speed,” Han said. “Samsung also should accelerate its humanoid plans.”
Similarly, LG’s Cho Joo-wan identified humanoid robots as a key focus for the company. He revealed that LG is considering increasing its stake in a robotics firm it invested in last year, signaling a long-term commitment to the sector.
A Glimpse into the Future
The CES 2025 showcase underscored the intensifying competition between Samsung and LG as they vie for dominance in overlapping markets. From subscription services to robotics, both companies are leveraging their strengths to capture consumer interest and drive innovation.
| Key Highlights | Samsung | LG |
|———————————-|—————————————————————————–|————————————————————————|
| Subscription Business | Expanding to include smartphones and Ballie robot | 2 trillion won revenue in 2024, 75% YoY growth |
| AI home Robots | Ballie robot set for release this year | Q9 robot set for release this year |
| Future Focus | Accelerating humanoid robot growth | Increasing stake in robotics firm for humanoid advancements |
As the tech landscape evolves, Samsung and LG are not just competing for market share—they’re shaping the future of how we interact with technology. Whether through subscription models or cutting-edge robotics, both companies are pushing the boundaries of innovation, ensuring that consumers remain at the heart of their strategies.
Samsung Electro-Mechanics and LG innotek Compete for dominance in Semiconductor Substrate Market
The global semiconductor industry is witnessing a fierce competition between two South Korean giants, Samsung Electro-Mechanics and LG Innotek, as they vie for leadership in the production of advanced semiconductor substrates. Both companies are focusing on Flip Chip-Ball grid Array (FC-BGA) substrates and next-generation glass substrates, critical components for high-performance chips used in AI processors, servers, and cloud computing.
At CES 2025, held in Las Vegas, the rivalry between the two firms took center stage. LG Innotek CEO Moon Hyuk-soo revealed that the company has begun mass-producing FC-BGA substrates for a major North American tech firm. “As we are a late starter, our FC-BGA production capacity accounts for a small portion of the global market,” Moon admitted. Though,he emphasized that LG Innotek’s expertise in camera module automation would soon translate into higher efficiency and yield in FC-BGA production. “When we reach that level, we will have greater cost competitiveness as well as higher yield than Samsung Electro-Mechanics,” he added.
On the other hand, Samsung Electro-Mechanics CEO Chang duck-hyun expressed confidence in his company’s FC-BGA business. Speaking to Yonhap News Agency, Chang revealed that Samsung Electro-Mechanics is in negotiations with global tech giants for FC-BGA supply, hinting that these clients are involved in AI server and cloud businesses.
The Rise of FC-BGA Substrates
FC-BGA substrates are essential for high-performance microprocessors, graphics processing units (GPUs), and chipsets. With the global surge in demand for AI processors, the market for FC-BGA substrates has grown considerably.Currently,Japanese and Taiwanese manufacturers dominate the global market,but Samsung Electro-Mechanics has been steadily closing the gap. LG Innotek,which entered the FC-BGA market in 2022,is now positioning itself as a formidable competitor.
| Key Players in FC-BGA Market | Market Position | Recent Developments |
|———————————-|———————|————————-|
| Samsung Electro-Mechanics | Close to market leaders | Negotiating with global tech firms for AI server and cloud applications |
| LG Innotek | Late entrant,growing rapidly | Mass-producing FC-BGA for a North American tech giant |
| Japanese and Taiwanese Firms | Market leaders | Dominating global FC-BGA production |
Glass Substrates: The Future of Semiconductor Manufacturing
Both companies are also investing heavily in glass substrates,a next-generation technology poised to revolutionize semiconductor manufacturing.As the miniaturization of semiconductors approaches its physical limits, glass substrates offer a breakthrough solution.Samsung Electro-Mechanics plans to begin mass-producing glass substrates in 2027. “We will supply samples to two to three clients,” Chang announced during a press conference at CES 2025. Glass substrates provide a smoother surface compared to conventional materials, enabling the transfer of ultra-fine circuit patterns. This innovation can boost semiconductor speeds by up to 40% while reducing power consumption by half.
LG Innotek is not far behind. CEO Moon confirmed that the company will start producing glass substrate samples in the latter half of 2024. “Glass substrates will be the mainstream for server chips,” moon stated, underscoring the technology’s potential to reshape the industry.
The Road Ahead
The competition between Samsung Electro-Mechanics and LG Innotek reflects the broader race to meet the growing demand for advanced semiconductor components.with AI, cloud computing, and data centers driving the need for high-performance chips, both companies are leveraging their strengths to capture a larger share of the market.
For Samsung Electro-Mechanics, the focus is on maintaining its edge in FC-BGA production while pioneering glass substrate technology.LG Innotek, conversely, is betting on its automation expertise to close the gap and achieve cost competitiveness.
As the semiconductor industry continues to evolve, the innovations and strategies of these two South Korean giants will play a pivotal role in shaping its future.
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For more insights into the latest developments in the semiconductor industry, visit Korea Times.SK Group’s materials unit, SKC, is emerging as a frontrunner in the competitive glass substrate market, challenging industry giants like Samsung and LG. During a visit to SK Group’s booth at CES 2025, Chairman Chey Tae-won made a significant announcement, revealing that the company had “just sold” its glass substrates.this statement suggests that SKC has already secured a client, even though the product is still in the pre-mass production phase.
The timing of Chey’s announcement has sparked speculation about a potential meeting with Nvidia CEO jensen Huang, who was reportedly in attendance at the event. While details of the discussion remain undisclosed, the proximity of the two executives has fueled rumors of a possible collaboration or partnership in the semiconductor space.
Glass substrates are a critical component in advanced semiconductor manufacturing, offering improved performance and energy efficiency compared to customary materials. SKC’s early success in this niche market could position the company as a key player in the global supply chain, especially as demand for high-performance chips continues to rise.
Key Highlights from SKC’s CES 2025 Announcement
| Aspect | Details |
|————————–|—————————————————————————–|
| Product | Glass substrates for semiconductor manufacturing |
| Market Position | Early lead in the glass substrate market, ahead of competitors like Samsung and LG |
| Client status | Already secured a client, despite pre-mass production phase |
| Key Announcement | chairman Chey Tae-won stated, “just sold” SKC’s glass substrates |
| Speculated Meeting | Potential discussion with Nvidia CEO Jensen huang |
SKC’s breakthrough in the glass substrate market underscores the company’s commitment to innovation and its ability to compete with established industry leaders. As the semiconductor industry continues to evolve, SKC’s advancements could play a pivotal role in shaping the future of chip manufacturing.For more updates on SK Group’s latest developments, visit their official website.
Nies are positioning themselves as key players in teh global semiconductor supply chain. the rivalry between Samsung Electro-Mechanics and LG Innotek is not just about market share—it’s about shaping the future of technology.
Key Takeaways:
- FC-BGA Substrates: Both companies are aggressively competing in the FC-BGA market, with Samsung Electro-Mechanics leveraging its established position and LG Innotek rapidly scaling its production capabilities. The demand for FC-BGA substrates is surging due to their critical role in AI processors, GPUs, and cloud computing infrastructure.
- Glass Substrates: The next frontier in semiconductor manufacturing,glass substrates promise notable performance improvements,including faster speeds and reduced power consumption. Samsung Electro-Mechanics aims to begin mass production by 2027, while LG Innotek is targeting sample production by late 2024.
- Global Competition: While Japanese and Taiwanese firms currently dominate the FC-BGA market, Samsung and LG are closing the gap. Their investments in advanced technologies like glass substrates could help them challenge the incumbents and secure a larger share of the global market.
- Strategic Focus: Both companies are aligning their strategies with the needs of AI, cloud computing, and data centers, ensuring they remain at the forefront of technological innovation. their efforts to improve production efficiency and yield will be critical in maintaining cost competitiveness.
Future Outlook:
The semiconductor industry is at a pivotal moment, with advancements in AI and cloud computing driving unprecedented demand for high-performance chips. Samsung Electro-Mechanics and LG Innotek are well-positioned to capitalize on this trend, but their success will depend on their ability to innovate, scale production, and maintain cost efficiency. As the competition intensifies, consumers and businesses alike stand to benefit from the rapid advancements in semiconductor technology.
In the coming years, the rivalry between these two South korean giants will likely continue to fuel innovation, pushing the boundaries of what’s possible in the semiconductor industry and beyond.
