Lee Jae-yong's Business Trip to the US After 5 Years... Building Trust with Samsung Clients First

Focus on Major Clients, Expected Collaboration in Semiconductor, Telecommunications, and Home Appliances
Foundry Plant Investment: Austin Application Withdrawn

Samsung Electronics Vice Chairman Lee Jae-yong is departing through the Gimpo Airport Business Aviation Center in Gangseo-gu on the 14th. Vice Chairman Lee is scheduled to visit Samsung Electronics' Artificial Intelligence (AI) research center in Canada, followed by a visit to the United States to make the final decision on the site for a new foundry (semiconductor contract manufacturing) plant in the U.S. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics Vice Chairman Lee Jae-yong is expected to strengthen trust with key business clients in semiconductors, vaccines, and telecommunications, as well as restore overseas networks during his business trip to the United States, his first visit in five years since 2016.

According to business circles on the 16th, Vice Chairman Lee will first visit Canada to tour Samsung Electronics' Artificial Intelligence (AI) Research Center, then head to the United States, where Samsung Electronics is scouting new sites for a foundry (semiconductor contract manufacturing) plant with an investment of $17 billion (about 20 trillion KRW). There, he is expected to meet representatives of global clients in Samsung’s core business sectors such as semiconductors, telecommunications, and home appliances to explore cooperation.

A semiconductor industry insider said, "Among Samsung Electronics' major business partners, U.S. companies account for about 30 to 40%, making their influence significant," adding, "It is important for the group leader to engage in business that strengthens ties with clients and encourages continuous cooperation." Client management in telecommunications and home appliances, centered on semiconductors, is also included. According to Samsung Electronics' quarterly report disclosed the previous day, as of the third quarter of this year, Samsung’s top five major customers were Apple, Best Buy, Deutsche Telekom, Verizon, and Supreme Electronics (a Taiwanese semiconductor distribution company). Among these clients, three are U.S. companies.

Previously, Vice Chairman Lee has used his U.S. trips as an opportunity to meet major client representatives and address Samsung Electronics' issues. The 'Sun Valley Conference,' hosted annually by the U.S. investment bank Allen & Company, is a representative example. He once said, "The Sun Valley Conference is the busiest and most important trip of the year," adding, "I meet with 20 to 30 clients including Apple and Facebook (Meta)."

In fact, he has attended this event every year since 2002. In 2014, he met Apple CEO Tim Cook there and agreed to withdraw patent lawsuits outside the U.S. At the 2015 Sun Valley Conference, he was seen talking with Lowell McAdam, then CEO of Verizon, and the following year, he met Ginni Rometty, then CEO of IBM, to discuss AI and cloud technologies. Since then, he was unable to visit the U.S. due to handling issues such as the political scandal trial (2017), the completion of the India smartphone factory (2018), and Japan's export restrictions (2019). The same applied last year and this year due to COVID-19 and his incarceration.

Therefore, during his return to the U.S. after five years, building a global network including key figures from politics and business is expected to be a top priority. Before departing on the 14th, Vice Chairman Lee stated, "I plan to meet several U.S. partners." As Samsung Electronics has decided to conduct 6G experiments in the U.S. to secure leadership in the 6th generation mobile communication (6G) market, there is speculation that Vice Chairman Lee may attend a technology demonstration aligned with his U.S. visit schedule.

Meanwhile, according to foreign media on the same day, it was confirmed that Samsung's tax incentive application for the Austin semiconductor investment project, submitted to the Manor Independent School District in Austin, Texas, has been withdrawn. The incentive negotiation parties related to the Austin area include the City of Austin, Travis County, and Manor Independent School District, totaling three entities. The application submitted by one of these parties has been deleted.

With the withdrawal of the application from one candidate site in the Austin area, there is speculation that Taylor City, also in Texas and previously mentioned as another candidate site, may have been selected as the final location. Samsung Electronics' tax incentive application submitted for Taylor is still valid on the state government website. Regarding this, Samsung Electronics stated, "We are still reviewing multiple candidate sites."

This content was produced with the assistance of AI translation services.