Strategy in TECH...
Multiple sources over the last several weeks have reported that LG Electronics has decided not to exhibit at the upcoming 2025 CEDIA Expo, which begins in less than three weeks at the Colorado Convention Center in Denver, Colorado. While many industry people appear to be aware of this fact, most have no idea why the leading TV maker has made this decision.
Enigmatic, mercurial CEO Elon Musk confirmed to Reuters news that Tesla has signed a deal with Samsung Electronics to manufacture and supply Tesla’s next-generation AI chips, the AI6. The contract is said to be valued at $16.5 billion.
Samsung Electronics and the largest union at the company have finally reached a preliminary agreement on a new contract that provides for a wage increase as well as other benefit enhancements, the company announced today in Korea. The deal should put an end to any further labor actions. However, it still needs to be ratified by the union membership.
Samsung Electronics, Inc. – a giant in the global consumer electronics industry – saw operating profits drop a stunning 40% in its all-important Device Solutions Division compared to the previous quarter. Device Solutions is its semiconductor division and many in the industry are watching this division closely, as it is a key part of Samsung’s business. But recently, the company – in a rare miss – failed to get on board with the rapid growth of the artificial intelligence (AI) industry early on. It is now running to catch up to competitors and this result shows they are not yet there.
A former high-level Samsung Electronics executive was indicted on Monday for industrial espionage as it is alleged that he stole trade secrets in the form of blueprints and designs for an advanced Samsung chipmaking factory in order to create an identical one in China. South Korean prosecutors say the executive’s actions jeopardized national economic security, according to a report by the Reuters News Agency.
JOLED, a Japanese manufacturer of OLED-based panels and products that was formed by the merger of the OLED divisions of both Panasonic and Sony, filed for bankruptcy protection in the Tokyo District Court on Monday. According to the filing, the company reported that it has debts totaling ¥33.7 billion ($257 million).
Major American and Asian chip makers warned this week that they may scale back their planned investments in building U.S. semiconductor production if Congress doesn’t finally move forward and pass the CHIPS Act. The CHIPS Act is legislation the administration seeks to build up a more robust U.S.-based semiconductor supply chain.
Samsung Electronics is taking action to hold back on procurement orders and asking suppliers for concessions, such as delayed deliveries, order reductions, and more in the wake of a concerning buildup of inventory. While the action is said to be temporary, concerns over a slowing global economy make it difficult to determine how long the company will deem these actions are necessary.
In a rare show of bipartisanship, a group of U.S. Senators has sent a strongly worded letter to a leading consumer electronics industry remote control maker Universal Electronics, Inc. (UEI) launching a probe into the company’s hiring practices in China. Unique to UEI is that they own their own factories in China (most contract with existing China OEM factories) and a recent damning investigation by Reuters alleges the company is working with the Chinese government to utilize a widely persecuted Uyghur minority in a forced labor arrangement, a human rights violation. UEI has denied the accusation but so far has not provided data to back up their denial.
What a crazy couple of weeks it has been for exhibitors of CEDIA Expo 2021, and also for potential attendees who watched a slow-motion train wreck unfold right in front of their eyes. It was almost exactly two weeks ago – on August 10th – when Savant CEO Robert Madonna suddenly announced that Savant was pulling out of CEDIA, due to concerns over the surging infections from the Delta variant of COVID-19.
Little did we know then that this was the trickle before the flood…
