Latest news with #JayY.Lee
Time of India
14-05-2025
- Automotive
- Time of India
Samsung Electronics to buy German cooling system maker FlaktGroup for $1.7 billion
South Korea's Samsung Electronics on Wednesday said it has agreed to buy FlaktGroup, a German maker of air conditioning and heating systems, for 1.5 billion euros ($1.68 billion) from private equity group Triton. Samsung, through its biggest acquisition in eight years, said it aims to tap demand for data centres for artificial intelligence projects, which require stable cooling. The data centre segment has a high barrier to entry requiring global supply experience and the ability to present optimal designs and solutions, Samsung said in a statement. It expects the FlaktGroup deal to close within this year, it said. Shares in the consumer electronics and semiconductor maker inched up 0.7% largely in line with the benchmark KOSPI. Samsung, led by Chairman Jay Y. Lee, at a shareholder meeting in March said it was looking for deals to drive growth after largely missing out on an AI chip boom. In contrast, compatriot SK Hynix supplies advanced high bandwidth memory (HBM) chips to AI leader Nvidia. Investors expecting bigger deals involving Samsung's cash cow chip business might feel underwhelmed by the FlaktGroup announcement, analysts said. "This acquisition is more about reinforcing its consumer electronics and home appliance businesses, so it is not the game-changing deal the market had been hoping for," said Greg Roh, head of research at Hyundai Motor Securities. Samsung's appliance business also makes commercial cooling and heating systems. "It feels like the company is playing it safe rather than making bold bets," Roh said. Samsung has shunned major acquisitions since its $8 billion purchase of car electronics maker Harman International Industries in 2017. This month, Harman agreed to buy the audio business of U.S. firm Masimo for $350 million. Consumer audio is a new growth engine, Samsung has said, alongside cooling and heating systems, medical and robotics. In December, Samsung became the largest shareholder of South Korea's Rainbow Robotics with the purchase of an additional 267 billion won ($189.03 million) stake. ($1 = 0.8937 euros) ($1 = 1,412.5000 won)
Time of India
14-05-2025
- Automotive
- Time of India
Samsung electronics to buy German cooling system maker FlaktGroup for $1.7 billion
South Korea's Samsung Electronics on Wednesday said it has agreed to buy FlaktGroup, a German maker of air conditioning and heating systems, for 1.5 billion euros ($1.68 billion) from private equity group Triton. Samsung, through its biggest acquisition in eight years, said it aims to tap demand for data centres for artificial intelligence projects, which require stable cooling. The data centre segment has a high barrier to entry requiring global supply experience and the ability to present optimal designs and solutions, Samsung said in a statement. It expects the FlaktGroup deal to close within this year, it said. Shares in the consumer electronics and semiconductor maker inched up 0.7% largely in line with the benchmark KOSPI. Samsung, led by Chairman Jay Y. Lee, at a shareholder meeting in March said it was looking for deals to drive growth after largely missing out on an AI chip boom. In contrast, compatriot SK Hynix supplies advanced high bandwidth memory (HBM) chips to AI leader Nvidia. Investors expecting bigger deals involving Samsung's cash cow chip business might feel underwhelmed by the FlaktGroup announcement, analysts said. "This acquisition is more about reinforcing its consumer electronics and home appliance businesses, so it is not the game-changing deal the market had been hoping for," said Greg Roh, head of research at Hyundai Motor Securities. Samsung's appliance business also makes commercial cooling and heating systems. "It feels like the company is playing it safe rather than making bold bets," Roh said. Samsung has shunned major acquisitions since its $8 billion purchase of car electronics maker Harman International Industries in 2017. This month, Harman agreed to buy the audio business of U.S. firm Masimo for $350 million. Consumer audio is a new growth engine, Samsung has said, alongside cooling and heating systems, medical and robotics. In December, Samsung became the largest shareholder of South Korea's Rainbow Robotics with the purchase of an additional 267 billion won ($189.03 million) stake. ($1 = 0.8937 euros) ($1 = 1,412.5000 won)
Time of India
14-05-2025
- Business
- Time of India
Samsung Electronics to buy German cooling system maker FlaktGroup for $1.7 billion
South Korea's Samsung Electronics on Wednesday said it has agreed to buy FlaktGroup , a German maker of air conditioning and heating systems, for 1.5 billion euros ($1.68 billion) from private equity group Triton . Samsung, through its biggest acquisition in eight years, said it aims to tap demand for data centres for artificial intelligence projects, which require stable cooling. The data centre segment has a high barrier to entry requiring global supply experience and the ability to present optimal designs and solutions, Samsung said in a statement. It expects the FlaktGroup deal to close within this year, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This might be relevant for you Undo Shares in the consumer electronics and semiconductor maker inched up 0.7% largely in line with the benchmark KOSPI. Samsung, led by Chairman Jay Y. Lee, at a shareholder meeting in March said it was looking for deals to drive growth after largely missing out on an AI chip boom. In contrast, compatriot SK Hynix supplies advanced high bandwidth memory (HBM) chips to AI leader Nvidia. Live Events Investors expecting bigger deals involving Samsung's cash cow chip business might feel underwhelmed by the FlaktGroup announcement, analysts said. "This acquisition is more about reinforcing its consumer electronics and home appliance businesses, so it is not the game-changing deal the market had been hoping for," said Greg Roh, head of research at Hyundai Motor Securities. Samsung's appliance business also makes commercial cooling and heating systems. "It feels like the company is playing it safe rather than making bold bets," Roh said. Samsung has shunned major acquisitions since its $8 billion purchase of car electronics maker Harman International Industries in 2017. This month, Harman agreed to buy the audio business of U.S. firm Masimo for $350 million. Consumer audio is a new growth engine, Samsung has said, alongside cooling and heating systems, medical and robotics. In December, Samsung became the largest shareholder of South Korea's Rainbow Robotics with the purchase of an additional 267 billion won ($189.03 million) stake. ($1 = 0.8937 euros) ($1 = 1,412.5000 won)
Gulf Today
13-04-2025
- Business
- Gulf Today
What Samsung and Vietnam stand to lose in Trump's tariff war
When Samsung Electronics chairman Jay Y. Lee met Vietnam's prime minister in July, he had a simple message to convey. 'Vietnam's success is Samsung's success, and Vietnam's development is Samsung's development,' Lee told Pham Minh Chinh, pledging long-term investment to make the country its biggest manufacturing base for display products. Since the South Korean conglomerate entered Vietnam in 1989, it has poured billions of dollars into expanding its global manufacturing footprint beyond China. Many of its peers followed after US President Donald Trump placed tariffs on Chinese goods in his first term. The pioneering move has made Samsung Vietnam's biggest foreign investor and exporter. About 60% of the 220 million phones Samsung sells each year globally are made in Vietnam, and many are destined for the US, where Samsung is the No. 2 smartphone vendor, according to research firm Counterpoint. Now, that reliance on Vietnam threatens to backfire as Hanoi is racing to negotiate with the Trump administration to lower a punishing potential 46% tariff that has exposed the vulnerability of the Southeast Asian country's export model. While Vietnam and Samsung won a reprieve this week after Trump paused the rate at 10% for 90 days, Reuters interviews with more than a dozen people, including at Samsung and its suppliers, show the company would be a primary victim should higher US tariffs take effect in July. 'Vietnam is where we produce most of our smartphones, but the tariffs (initially) came out much higher than expected for the country, so there's a sense of confusion internally,' said a Samsung executive, who like some others was granted anonymity to discuss a sensitive subject. Even if the two countries reach an agreement, Vietnam's roughly $120 billion trade surplus with the US has put it in the sights of a U.S. administration targeting such imbalances. Hanoi hopes to get the duties reduced to a range of 22% to 28%, if not lower, Reuters has reported. Amid the uncertainty, Samsung and its suppliers are considering adjusting production, said four people familiar with the matter. That could involve increasing output in India or South Korea, though such steps would be costly and time-consuming, they said. Samsung declined to comment about how it is navigating the tariff threat. It has said previously it would respond flexibly to U.S. tariffs with its global supply chain and manufacturing footprints. Vietnam's foreign and industry ministries also didn't reply to requests for comment. Samsung's rival Apple faces an even bigger challenge at least in the short term, as Trump's tariffs on Chinese imports have increased to 145%. Apple imports around 80% of iPhones sold in the U.S. from China, according to Counterpoint. Apple didn't reply to a request for comment. The tariff fear is the latest cloud over the manufacturing landscape in Vietnam, which had become a popular destination for companies looking to diversify amid China-U.S. tensions. But the boom has contributed to power supply problems. Vietnam has also increased its effective tax rate on large multinationals in line with OECD-led global standards, which some companies complained came without adequate compensation for the loss of earlier tax incentives. Further, the influx of foreign companies tightened supply of skilled workers and increased wage costs, according to several South Korean firms based in Vietnam. One person described the situation as 'very serious'. Mounting pressures could cost Vietnam investment appeal relative to other countries, according to some economists. 'Vietnam's loss could be India's gain,' Nomura economists said in a note. India wants to move quickly on a trade deal with the U.S., a government official said on April 10. The two countries agreed in February to work on the first phase of a deal to be concluded late this year. Vietnam has already made concessions to the U.S., including increasing imports. It was among the first countries to announce the start of trade talks with the Trump administration after the moratorium on 'reciprocal' tariffs. But foreign manufacturers are nervous. Ko Tae-yeon, chairman of Korea Chamber of Business in Vietnam, said that initially there was 'panic' about Trump's tariffs. Some had made plans to cut staff at local factories, he said, without specifying. In light of Trump's pause, companies were now in 'wait and see mode', added Ko, who is director general of Heesung Electronics, a supplier of LG Display. Samsung has not made a decision on how to respond to the Vietnam tariffs given Trump's changing approach, but one option is to produce some U.S.-bound smartphone models at its factory in the South Korean city of Gumi, two of the people said. Four people said Samsung could boost production in India but it would first need to expand its smartphone supply chain there, as India can currently handle only around 20% of Samsung's total output. BMI Research, a subsidiary of Fitch Solutions, estimates that electronics products account for roughly 45% of Vietnam's exports to the U.S. and major producers like Samsung would likely reduce production in anticipation of a decline in demand. Samsung also makes TVs, home appliances and device screens in Vietnam. Its exports amounted to around $54 billion last year, around 15% of Vietnam's total, government estimates show. As Samsung weighs its options, worries are rippling through factory floors. 'I am afraid they may cut everything,' said Nguyen Thi Hao, a 39-year-old worker at a Samsung plant in Thai Nguyen, north of Hanoi. Reuters
Japan Times
12-04-2025
- Business
- Japan Times
What Samsung and Vietnam stand to lose in Trump's tariff war
When Samsung Electronics chairman Jay Y. Lee met Vietnam's prime minister in July, he had a simple message to convey. "Vietnam's success is Samsung's success, and Vietnam's development is Samsung's development," Lee told Pham Minh Chinh, pledging long-term investment to make the country its biggest manufacturing base for display products. Since the South Korean conglomerate entered Vietnam in 1989, it has poured billions of dollars into expanding its global manufacturing footprint beyond China. Many of its peers followed after U.S. President Donald Trump placed tariffs on Chinese goods in his first term. The pioneering move has made Samsung Vietnam's biggest foreign investor and exporter. About 60% of the 220 million phones Samsung sells each year globally are made in Vietnam, and many are destined for the U.S., where Samsung is the No. 2 smartphone vendor, according to research firm Counterpoint. Now, that reliance on Vietnam threatens to backfire as Hanoi is racing to negotiate with the Trump administration to lower a punishing potential 46% tariff that has exposed the vulnerability of the Southeast Asian country's export model. While Vietnam and Samsung won a reprieve this week after Trump paused the rate at 10% for 90 days, interviews with more than a dozen people, including at Samsung and its suppliers, show the company would be a primary victim should higher U.S. tariffs take effect in July. "Vietnam is where we produce most of our smartphones, but the tariffs (initially) came out much higher than expected for the country, so there's a sense of confusion internally," said a Samsung executive, who like some others was granted anonymity to discuss a sensitive subject. Even if the two countries reach an agreement, Vietnam's roughly $120 billion trade surplus with the U.S. has put it in the sights of a U.S. administration targeting such imbalances. Hanoi hopes to get the duties reduced to a range of 22% to 28%, if not lower. Amid the uncertainty, Samsung and its suppliers are considering adjusting production, said four people familiar with the matter. That could involve increasing output in India or South Korea, though such steps would be costly and time-consuming, they said. A Samsung Electronics factory in Bac Ninh province, Vietnam | REUTERS Samsung declined to comment about how it is navigating the tariff threat. It has said previously it would respond flexibly to U.S. tariffs with its global supply chain and manufacturing footprints. Vietnam's foreign and industry ministries also didn't reply to requests for comment. Samsung's rival Apple faces an even bigger challenge at least in the short term, as Trump's tariffs on Chinese imports have increased to 145%. Apple imports around 80% of iPhones sold in the U.S. from China, according to Counterpoint. Apple didn't reply to a request for comment. The tariff fear is the latest cloud over the manufacturing landscape in Vietnam, which had become a popular destination for companies looking to diversify amid China-U.S. tensions. But the boom has contributed to power supply problems. Vietnam has also increased its effective tax rate on large multinationals in line with OECD-led global standards, which some companies complained came without adequate compensation for the loss of earlier tax incentives. Further, the influx of foreign companies tightened supply of skilled workers and increased wage costs, according to several South Korean firms based in Vietnam. One person described the situation as "very serious." Mounting pressures could cost Vietnam investment appeal relative to other countries, according to some economists. "Vietnam's loss could be India's gain," Nomura economists said in a note. India wants to move quickly on a trade deal with the U.S., a government official said on April 10. The two countries agreed in February to work on the first phase of a deal to be concluded late this year. Vietnam has already made concessions to the U.S., including increasing imports. It was among the first countries to announce the start of trade talks with the Trump administration after the moratorium on "reciprocal" tariffs. But foreign manufacturers are nervous. Ko Tae-yeon, chairman of Korea Chamber of Business in Vietnam, said that initially there was "panic" about Trump's tariffs. Some had made plans to cut staff at local factories, he said, without specifying. In light of Trump's pause, companies were now in "wait and see mode," added Ko, who is director general of Heesung Electronics, a supplier of LG Display. Samsung has not made a decision on how to respond to the Vietnam tariffs given Trump's changing approach, but one option is to produce some U.S.-bound smartphone models at its factory in the South Korean city of Gumi, two of the people said. Four people said Samsung could boost production in India but it would first need to expand its smartphone supply chain there, as India can currently handle only around 20% of Samsung's total output. BMI Research, a subsidiary of Fitch Solutions, estimates that electronics products account for roughly 45% of Vietnam's exports to the U.S. and major producers like Samsung would likely reduce production in anticipation of a decline in demand. Samsung also makes TVs, home appliances and device screens in Vietnam. Its exports amounted to around $54 billion last year, around 15% of Vietnam's total, government estimates show. As Samsung weighs its options, worries are rippling through factory floors. "I am afraid they may cut everything," said Nguyen Thi Hao, a 39-year-old worker at a Samsung plant in Thai Nguyen, north of Hanoi.
