"I Will Return Safely" Lee Jae-yong Heads to Europe on Business Trip... Leading a Mega M&A (Comprehensive)

Visit to the Netherlands and Germany by the 18th
First destination ASML... Likely to oversee EUV equipment supply directly
Focus on large-scale M&A... NXP and Infineon mentioned
Possible announcement of a 'New Management Declaration' message

Samsung Electronics Vice Chairman Lee Jae-yong is departing for a business trip to Europe on the 7th through the Gimpo Business Aviation Center (SGBAC) in Gangseo-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Jin-ho] Samsung Electronics Vice Chairman Lee Jae-yong embarked on a business trip to Europe on the 7th. This marks the resumption of his 'global management' activities six months after his visit to the Middle East last December, with the main purposes being to inspect local businesses and explore future growth engines. In particular, there are expectations that the outline of the ongoing large-scale mergers and acquisitions (M&A) will be revealed.

Coincidentally, this day marks the 29th anniversary of the late Chairman Lee Kun-hee's so-called 'New Management Declaration' in Frankfurt, Germany. The reason why the business community is focusing on Lee’s departure to Europe on this commemorative day?when he famously said, "Change everything except your wife and children," which propelled Samsung from dormancy to the world’s top tier?is clear.

Lee departed for Europe around 11:45 a.m. through the Gimpo Business Aviation Center. When asked before departure about the 'people he would meet during the trip' and 'expected M&A outcomes,' he briefly replied, "I will come back safely." It is known that Lee will visit the Netherlands, Germany, and other countries until the 18th.

Lee’s first destination is expected to be the global semiconductor equipment company ASML’s headquarters in Eindhoven, the Netherlands. ASML is the sole producer of extreme ultraviolet (EUV) lithography equipment essential for semiconductor fine processes.

For Samsung, a latecomer in the foundry (semiconductor contract manufacturing) market, securing EUV equipment is an essential task to narrow the gap with Taiwan’s TSMC. The problem lies in supply not meeting demand. According to the securities industry, ASML’s shipments this year are only 51 units. Of these, Samsung is said to have secured 18 units, while TSMC has 22 units.

Especially as the U.S. and Japan are also beginning full-scale foundry investments, the behind-the-scenes competition to secure EUV equipment is expected to intensify. From Samsung’s perspective, which recently declared its goal to become a 'semiconductor superpower,' it is necessary for Lee to personally strengthen the cooperative relationship with ASML. A semiconductor industry insider said, "Even if you have the money, you cannot buy EUV equipment," adding, "As competition to secure EUV equipment intensifies, the fact that the top management is directly involved shows their determination to resolve this."

There are also expectations that Samsung’s large-scale M&A will become more visible following Lee’s European trip. The industry is cautiously speculating about Samsung’s potential acquisition of automotive semiconductor companies. Samsung Electronics Vice Chairman Han Jong-hee recently told reporters that they are "reviewing" the possibility of M&A.

In the Netherlands, there is semiconductor company NXP, which has long been considered a strong M&A candidate for Samsung. In Germany, there is automotive semiconductor company Infineon. There is also speculation about the possibility of visiting ARM, a semiconductor design (fabless) company in the UK, to discuss M&A.

If the M&A is realized, Samsung will achieve a significant result since acquiring Harman in 2016. However, approval from major competition authorities remains a hurdle. With global supply chain competition intensifying, M&A in the semiconductor field is realistically not easy.

The business community is paying attention to whether Lee will deliver a new message akin to the 'New Management Declaration' during his European trip. Just as the late Chairman Lee Kun-hee read the 'Fukuda Report' 29 years ago and ordered a sweeping innovation, criticizing Samsung for complacency and lack of creative challenges, there is speculation that Lee Jae-yong may demand a similarly large-scale innovation. Recently, a semiconductor researcher pointed out in an email to Lee that there is a sense of 'crisis' in an organization mired in routine and inertia.

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