Samsung Electronics (005930.KS) Executive Chairman Jay Y. Lee is returning to Italy for the first time in four months, where he is expected to expand the automotive electronics market in Europe as well as boost supplies of automotive and power semiconductors. LS Group Chairman Koo Ja-eun and Hyosung (004800.KS) Group Chairman Cho Hyun-joon also aim to strengthen cooperation in fine chemicals and materials and expand exports of power equipment in Italy.
According to business circles Tuesday, Lee will attend the Korea-Italy Business Round Table to be held locally Thursday, in conjunction with President Lee Jae-myung's state visit to Italy.
As major business leaders from both countries will attend the business round table, specific cooperation agendas are expected to be addressed. Italy has strengths in luxury automobiles, energy, design, luxury goods, and aerospace. Analysts say there are many business areas where Samsung, Hyundai Motor, LS, and Hyosung can expand cooperation, including semiconductors, artificial intelligence (AI), home appliances, displays, automobiles, and power equipment.
In particular, Lee is revisiting Italy four months after engaging in sports diplomacy at the Milan-Cortina Winter Olympics in February this year, building close relationships with major local business leaders.
Business circles also view Lee's latest move as an opportunity to expand Samsung's cooperation network in Europe, going beyond simply supporting summit diplomacy. Samsung Electronics is cooperating with Italian industry by leveraging a broad business portfolio that includes not only smartphones, TVs, and home appliances but also memory semiconductors, foundry (contract chip manufacturing), automotive electronics, and AI platforms.
Samsung Electronics is first expected to expand cooperation in automotive semiconductors with STMicroelectronics, an Italian semiconductor company. STMicroelectronics produces automotive microcontroller units (MCUs) using Samsung Electronics' foundry 18nm (nanometer; one billionth of a meter) process. As vehicle electrification accelerates, demand for automotive MCUs and power semiconductors is steadily increasing. There are observations that Samsung Electronics will strengthen its semiconductor supply chain targeting the European automobile market by leveraging advanced foundry, memory, and packaging technologies.
There is also significant room for cooperation in the AI field. Italy has a solid foundation in traditional manufacturing such as precision machinery, automation, fashion, and furniture. By combining Samsung Electronics' AI semiconductors, mobile devices, displays, and SmartThings platform, the scope of cooperation can be expanded to optimizing energy use at manufacturing sites and automating logistics.
The possibility of cooperation with Samsung in automotive electronics and automobiles is also drawing attention. Italy is home to world-class automakers such as Ferrari, Maserati, and Stellantis. Samsung Electronics' subsidiary Harman has global competitiveness in automotive infotainment, digital cockpits, and premium audio. If cooperation with Italian supercar brands expands, the construction of next-generation automotive electronics solutions integrating automotive semiconductors, displays, AI voice interfaces, and audio could also accelerate.
Chairman Koo can also expand business into Europe's power grids, offshore wind, and distribution networks through cooperation between LS Group and Italian companies. There are assessments that LS Electric's power equipment, energy storage systems (ESS), and smart grid solutions could become cooperation cards for both countries. There are also expectations that LS could engage in supply chain cooperation with Italian automobile and energy companies using its rare earth value chain such as copper.
Hyosung, led by Chairman Cho, also operates businesses related to textiles, petrochemicals, and steel in Italy. On the occasion of this visit, Hyosung Heavy Industries (298040.KS) is expected to seek to expand exports of ultra-high-voltage transformers, targeting demand for power grid expansion in Europe. Hyosung, which operates Ferrari Korea in a joint venture with Ferrari, is also expected to discuss expanding cooperation in the automobile business.
Industry observers expect that Sung Kim, who is participating on behalf of Hyundai Motor Group, will strengthen mobility partnerships with local automakers. This is because Hyundai Motor Group can offer solutions in the electrification field, which is cited as a weakness of Italian automakers. In addition, they could join hands with Italian energy companies to expand hydrogen infrastructure in Europe, including hydrogen production, transportation, and utilization.
"Italy is a country with strong competitiveness in automobiles, energy, and design," a business official said. "If Samsung's semiconductor, AI, and automotive electronics technologies and LS and Hyosung's power infrastructure capabilities combine with local companies, it could become a new bridgehead in the European market."
