Lee Jae-yong, the chairman of Samsung Electronics, is set to meet with Ola Kallenius, the chairman of Mercedes-Benz, during the latter’s upcoming visit to South Korea. This meeting has sparked interest among industry observers, who believe it could mark a significant step towards deepening cooperation between the two companies, particularly in the field of automotive electronics.
According to industry sources, the meeting is scheduled to take place next week. Kallenius will be in South Korea to participate in a conference for domestic media in Incheon on the 14th. It is also possible that key executives from Samsung, such as Choi Joo-sun, president of Samsung SDI, and Yi Chung, president of Samsung Display, will join the discussions.
The potential collaboration between Samsung and Mercedes-Benz is seen as an opportunity to expand their existing partnership. Currently, Samsung supplies products like tablet PCs for certain Mercedes-Benz models. However, the discussions during this meeting are expected to go beyond that, potentially including areas such as batteries, semiconductors, and displays. As vehicles become more integrated with information technology, evolving into what some call “moving smartphones,” the demand for advanced automotive electronics is increasing. At present, Mercedes-Benz relies on batteries from LG Energy Solution and SK On for its electric vehicles sold in South Korea, but not from Samsung SDI.
This strategic meeting highlights the growing importance of partnerships between tech giants and automotive manufacturers. With the automotive industry undergoing a transformation driven by digitalization, collaborations like these are becoming essential for staying competitive in the evolving market.
In another major development, Samsung Electronics announced that it has completed the acquisition of 100% of the shares of the German Flakt Group. This marks a significant expansion for Samsung into the HVAC (heating, ventilation, and air conditioning) market. The acquisition was finalized for 1.5 billion euros, which is approximately 2.48 trillion Korean won.
Founded in 1918, Flakt Group is Europe’s largest manufacturer of HVAC equipment, specializing in cooling solutions for data centers, factory cleanrooms, and industrial and residential buildings. The company reported annual sales exceeding 700 million euros and operates over 10 global production facilities, along with extensive sales and service networks across Europe, the Americas, the Middle East, and Asia.
Samsung’s decision to acquire Flakt is driven by the rapid growth of AI data centers. These centers require continuous real-time processing of vast amounts of data, which demands high power consumption and efficient thermal management. The HVAC market for data centers is expected to grow at an average annual rate of 18% until 2030, making this acquisition a strategic move for Samsung to position itself in this expanding sector.
By integrating Flakt’s expertise in HVAC systems, Samsung aims to strengthen its presence in the central HVAC market. This move aligns with the company’s broader strategy to diversify its business and explore new opportunities in emerging industries, such as AI and data center infrastructure. The acquisition not only enhances Samsung’s technological capabilities but also reinforces its commitment to innovation and long-term growth.