Samsung and LG Electronics Race Ahead to Capture Growing EV Market Share


SEOUL, Aug. 11 (Yonhap) — Samsung Electronics Co. and LG Electronics Inc. announced on Friday that they will be participating in IAA Mobility 2023, an annual global mobility show held in Germany, for the first time. This step is seen as an attempt to gain a larger portion of the rapidly expanding electric vehicle (EV) parts market.

IAA Mobility, one of the world’s most significant mobility exhibitions, is scheduled to take place in Munich from Sept. 5-8. During this event, industry specialists and businesses will discuss and share the latest car trends and the future of mobility.

Samsung Electronics’ Device Solutions division, which is responsible for semiconductors, Samsung Display, and Samsung SDI, the Group’s display panel-making and battery-making affiliates, will be attending the show.

A Samsung employee demonstrates Harman's Ready Care, a driver monitoring system, during CES 2023, in Las Vegas, on Jan. 5, 2023. (Yonhap)

Samsung, the world’s leading memory chip producer, is a fairly recent entrant into the EV market. Nevertheless, in recent years, the company has been working hard to develop advanced chips for cars, a market that has experienced tremendous growth due to increased car electrification with advanced features, such as artificial intelligence and 5G-based telecommunications, and a greater uptake in electric vehicles.

Harman, Samsung’s automotive and audio electronics subsidiary, has seen steady growth since it was taken over by Samsung for US$8 billion in 2016. In the three months ending in June, Harman reported 3.5 trillion won (US$2.65 billion) in sales and 250 billion won in operating profit, making it the largest automotive order in its history. These figures were up 17.4 percent and 150 percent from the year-ago period, respectively.

In 2022, the company’s sales and profit hit record highs, driven by the rising demand for its high-end infotainment system.

Samsung is also aiming to expand its presence in the automobile chip market, a highly lucrative segment the company believes has the potential to become one of the three largest chip applications, alongside servers and mobile. London-based research firm IHS Markit estimated that the global automotive semiconductor market will experience an average annual growth rate of 11 percent to reach $143 billion by 2029.

The concept photo, provided by LG Electronics Inc., shows LG Magna's e-Powertrain. (PHOTO NOT FOR SALE) (Yonhap)

The concept photo, provided by LG Electronics Inc., shows LG Magna's e-Powertrain. (PHOTO NOT FOR SALE) (Yonhap)

At the IAA event next month, LG will present its vision for the future of mobility at its first-ever press conference, entitled “Taking Life’s Good on the Road,” on Sept. 4.

LG’s EV component division, which includes in-vehicle infotainment systems, e-powertrain, and headlamps, has been growing at an annual rate of 30 percent since its inception over 10 years ago. For the second quarter, the division reported quarterly sales of 2.66 trillion won, the highest second-quarter revenue in the company’s history. LG anticipates that its EV unit’s cumulative order backlog will reach 100 trillion won by the end of the year due to the massive growth of electric vehicles.

“Cars have evolved from a transportation means to a space that serves various purposes and provides new experiences,” LG CEO Cho Joo-wan said at a press conference last month. “The Vehicle Solutions division aims to become one of the world’s top players in the future mobility sector and to achieve annual sales of more than 20 trillion won by 2030 by actively responding to new mobility trends and using our insights into business-to-consumer markets,” he added.

LG Magna e-Powertrain, a joint venture between LG Electronics and Magna International Inc., will open a new factory in Mexico next month to produce inverters, motors, and on-board chargers for General Motors.

Kim Dong-won, an analyst at KB Securities, predicted that LG’s EV business will contribute up to 12.3 percent of the company’s operating profit next year, up from 4.6 percent in 2022.

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