LG electronics’ Q9 self-driving AI home hub is on display during the company’s CES 2025 media day event at Mandalay Bay in Las Vegas, Monday (local time).EPA-Yonhap
LAS VEGAS — The battle for dominance in the tech world took center stage at CES 2025, as Samsung and LG unveiled their strategies to capture the next frontier of consumer technology. Both companies are pushing into overlapping sectors, from appliance subscriptions to robotics, signaling a fierce competition for market leadership.
Samsung Electronics, lead by CEO han Jong-hee, announced plans to broaden its subscription services beyond home appliances. “As we have belatedly started our product subscription business, the focal point will be about expanding the range of choice for customers,” Han stated during a press conference. “Though we are a latecomer, our subscription business is showing enormous growth, and several new models will be coming into the subscription program, so you can expect our subscription business to hit its stride.”
Last month, Samsung rolled out its subscription program, featuring AI-powered TVs, refrigerators, washers, and vacuums. han confirmed that the service will soon include Galaxy smartphones and Ballie, an AI-driven home robot. This move directly challenges LG Electronics,which has already carved a lucrative niche in the subscription market.
LG’s subscription business, which reported a staggering 2 trillion won ($1.37 billion) in revenue last year, saw a 75% increase from the previous year. LG CEO Cho joo-wan acknowledged the impending competition but remained optimistic. “There will be competition,” he said, “but I’m viewing it in an optimistic way as 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 about care. Our strength comes from the expertise, network and experience of our care managers.”
Beyond subscriptions, robotics is shaping up as the next battleground. Both Samsung and LG confirmed the release of their AI home robots—Ballie and Q9—this year. During their respective press conferences,the CEOs highlighted robotics as a core focus for the future,with humanoid robots expected to lead the industry.
Han pointed to Samsung’s recent investments in robotics, stating, “The global industry’s plans for humanoids is picking up speed, and Samsung also should accelerate its humanoid plans.” Similarly, Cho identified humanoid robots as LG’s future goal, hinting at increased investments in robotics ventures.
As the race for innovation heats up, Samsung and LG are not just competing for market share—they’re shaping the future of consumer technology. From subscription services to robotics, their strategies are a testament to the evolving landscape of tech innovation.
At CES 2025, the spotlight wasn’t just on flashy gadgets and futuristic tech—it was also on the fierce competition brewing between two South Korean giants, LG Innotek and Samsung Electro-Mechanics. Both companies are vying for dominance in the semiconductor substrate market, notably in the production of flip chip-ball grid array (FC-BGA) and glass substrates, which are critical for next-generation AI processors and high-performance computing.
During an exclusive interview at the Las Vegas Convention Center, 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 a late entrant, our share in the global FC-BGA production capacity is still modest,” Moon admitted. “However, leveraging our expertise in camera modules, we’ve achieved a high level of automation in our plants. This will significantly boost our efficiency and yield in the coming years, giving us a competitive edge over rivals like Samsung Electro-Mechanics.”
Samsung Electro-Mechanics CEO Chang Duck-hyun speaking at a press conference during CES 2025. Courtesy of Samsung Electro-Mechanics.
FC-BGA substrates are essential for advanced microprocessors, GPUs, and chipsets, with demand skyrocketing due to the global AI boom. While Japanese and Taiwanese manufacturers currently dominate the market,Samsung Electro-Mechanics has been steadily closing the gap. LG Innotek, conversely, entered the FC-BGA arena in 2022 and is now ramping up its efforts to catch up.
Not to be outdone, Samsung Electro-Mechanics CEO Chang Duck-hyun expressed confidence in his company’s position. Speaking to yonhap News Agency, Chang revealed that Samsung is in talks with global tech giants to supply FC-BGA substrates, particularly for AI servers and cloud infrastructure. “We are negotiating with major players in the industry,” he said, hinting at lucrative deals on the horizon.
Chang also made waves by announcing that Samsung Electro-Mechanics will begin mass-producing glass substrates by 2027. “We plan to supply samples to two or three clients initially,” he said during a press conference. Glass substrates represent a groundbreaking advancement in semiconductor technology, offering a smoother surface that allows for ultra-fine circuit patterns. This innovation could increase semiconductor speeds by up to 40% while cutting power consumption in half—a game-changer for the industry.
LG Innotek’s Moon echoed this sentiment, predicting that glass substrates will become the standard for server chips. “We’ll start producing samples in the second half of this year,” he said, signaling that the race to dominate this emerging market is heating up.
as the semiconductor industry approaches the physical limits of miniaturization, glass substrates are poised to revolutionize the field. With smoother surfaces and superior performance, they could unlock new possibilities for AI, data centers, and beyond. Both LG Innotek and Samsung Electro-Mechanics are betting big on this technology,setting the stage for a high-stakes battle that could reshape the global tech landscape.
For now, the competition remains fierce, with each company leveraging its strengths to gain an edge. Whether it’s LG Innotek’s automation expertise or Samsung Electro-Mechanics’ established market presence, the outcome of this rivalry will have far-reaching implications for the future of semiconductors and the tech industry as a whole.
SK Group Chairman chey Tae-won listens to a presenter during his visit to SK Group’s booth at CES 2025 in Las Vegas. (Photo: Yonhap)
While Samsung and LG have long dominated the tech landscape, SK Group’s materials division, SKC, is making waves in the glass substrate market. The company’s recent strides at CES 2025 have positioned it as a formidable contender in this specialized sector.
During a visit to SK Group’s exhibition booth at the Las Vegas Convention Center, Chairman Chey Tae-won dropped a bombshell. “I just sold SKC’s glass substrates,” he revealed, hinting at a major deal secured even before mass production has begun. This announcement has sparked widespread speculation about the company’s future in the industry.
Rumors suggest that Chey’s statement followed a high-profile meeting with Nvidia CEO Jensen Huang, though neither party has confirmed the details. If true, this collaboration could mark a significant milestone for SKC, potentially opening doors to partnerships with other tech giants.
Glass substrates,a critical component in advanced semiconductor manufacturing,are gaining traction as demand for faster,more efficient chips grows. SKC’s early lead in this niche market could give it a competitive edge, especially as global tech companies race to innovate.
What sets SKC apart is its ability to secure clients during the pre-mass production phase—a rarity in the industry. This achievement underscores the company’s confidence in its technology and its ability to meet the rigorous demands of high-profile clients.
As the tech world watches closely, SKC’s progress could signal a shift in the dynamics of the glass substrate market. With Chairman Chey Tae-won at the helm, SK Group is proving that it’s not just keeping pace with industry leaders but also carving out its own path to innovation.
How do the innovative strategies of LG Innotek and Samsung Electro-Mechanics impact the future of semiconductor technology?
The stage for a high-stakes competition that could redefine the semiconductor landscape.
The rivalry between LG Innotek and Samsung Electro-Mechanics extends beyond FC-BGA and glass substrates. Both companies are also investing heavily in advanced packaging technologies, which are crucial for enhancing the performance and efficiency of next-generation chips. As the demand for AI and high-performance computing continues to surge, the ability to produce cutting-edge semiconductor components will be a key differentiator in the market.
LG Innotek’s moon emphasized the importance of innovation and agility in staying ahead of the competition. “Our focus is not just on catching up but on leapfrogging our competitors through continuous innovation and strategic investments,” he said. “We are committed to delivering high-quality, reliable products that meet the evolving needs of our customers.”
Samsung Electro-Mechanics’ chang, on the other hand, highlighted the company’s long-standing expertise and robust R&D capabilities.“We have a proven track record of delivering cutting-edge solutions, and our investments in glass substrates and advanced packaging technologies are a testament to our commitment to leading the industry,” he said. “We are confident that our efforts will position us as a key player in the global semiconductor market.”
As CES 2025 draws to a close, the competition between LG Innotek and Samsung Electro-Mechanics serves as a microcosm of the broader battle for dominance in the tech world. Both companies are pushing the boundaries of innovation, striving to capture the next frontier of consumer technology. Whether it’s through subscription services, robotics, or semiconductor advancements, their strategies are shaping the future of the industry.
The stakes are high, and the race is far from over. As Samsung and LG continue to innovate and expand their portfolios, the tech world will be watching closely to see which company emerges as the leader in this new era of consumer technology. One thing is certain: the competition between these two south Korean giants will drive innovation and deliver exciting new products and services to consumers around the globe.
