AI chip business lags behind peers, Samsung Electronics (SSNLF.US) goes a different route: selling AI home appliance plans.

Samsung Electronics (SSNLF.US) is increasing its investment in artificial intelligence for consumer electronics products, betting on a variety of electronic products from smartphones to TVs to establish a presence in the field of artificial intelligence. Samsung CEO Han Jong-Hee stated in an interview at the International Consumer Electronics Show (CES) in Las Vegas that Samsung, not only in the mobile device sector but also in the home appliance sector such as refrigerators and washing machines, relies on its unique market position. The company hopes to better connect the 500 million devices it sells annually to help make up for its mistakes in high-end memory and generative artificial intelligence. The stock price of South Korea's most valuable company fell by a third in 2024 as it failed to narrow the gap with competitor SK Hynix in the competition to sell advanced memory for artificial intelligence accelerators. NVIDIA Corporation's high-bandwidth storage chip HBM has been slow to be approved, leading to a loss of investor confidence, despite the company's strong performance in the smartphone department this year. At CES, Samsung highlighted its advantage in smart home technology. Unlike competitors Apple Inc. (AAPL.US), Amazon.com Inc. (AMZN.US), and Alphabet Inc. Class Cs, Samsungs family hub is directly integrated into the appliances consumers purchase. Under Han Jong-Hees leadership, the company has been installing artificial intelligence chips in refrigerators, washing machines, and Siasun Robot & Automation vacuum cleaners. Han Jong-Hee said, "Ultimately, our goal is to create new products that people have never experienced before." Han Jong-Hee is widely regarded as the hero who has helped Samsung maintain its position as the world's largest TV seller for nearly 20 years. Samsung also announced a new TV artificial intelligence program that will compete with Alphabet Inc. Class Cs TV software, offering real-time translation, content analysis, and audio and video enhancement features. Han Jong-Hee and Vice Chairman and Device Solutions (DS) department head and semiconductor head Jeon Young-hyun will share leadership responsibilities. Jeon Young-hyun will officially take on the role of co-CEO from March, responsible for the companys key semiconductor business. Han Jong-Hee will be responsible for all other affairs of the major electronics manufacturer but hopes Samsung's chip division will return to track this year. Artificial intelligence is the largest part of Samsung's R&D expenditure outside of semiconductors, and Han Jong-Hee plans to significantly increase investment in this area this year and beyond. He refused to disclose Samsung's specific spending but said the company is buying graphics cards from NVIDIA Corporation and AMD (AMD.US) for building several major data centers in South Korea. Samsung's SmartThings platform, which connects smartphones, TVs, and other home devices, now has 370 million users and has grown at a rate of 20% annually over the past three years. Starting this year, the Bixby voice assistant will be able to recognize family members and provide personalized experiences. The overall consumer electronics industry is expected to grow by about 3% this year, and Han Jong-Hee expects Samsung's performance to be even better. Looking at the company's current product line, Han Jong-Hee said the focus is on Siasun Robot & Automation, medical technology, and automotive technology to generate new growth. As part of these efforts, Samsung has acquired and invested in a range of startups over the past year.