Samsung clocked a brutal 2023, watching profits crater 85% year over year as smartphone and memory chip demand dried up. Yet the tech giant refuses to hunker down. Instead, leadership signals a spending offensive aimed directly at locking in future dominance.
The stakes could hardly feel higher. A global slowdown, geopolitical friction, and lingering pandemic fallout have made dealmaking treacherous. Still, Samsung sees acquisitions as its fastest route to fresh revenue streams. The company poured capital into 260 venture firms across artificial intelligence, robotics, digital health, fintech, and electronics over the last three years.
Now comes the hard part: turning those bets into blockbuster moves. JH Han, Vice Chairman of Samsung Electronics, told reporters the firm will pursue talent, technology, and investment “quickly and boldly” despite near-term turbulence. He acknowledged that M&A target lists remain under continuous review even with unfavorable conditions.
The last mammoth deal dates back to 2017, when Samsung absorbed Harman International for $8 billion. That transaction gave the company serious footing in connected car systems and premium audio. Recent purchases, such as eMagin and Roon, landed far smaller.
Speculation centers on Rainbow Robotics. Samsung already holds a 14.83% stake in the South Korean robotics firm, though negotiations have not yet produced a full acquisition. A successful takeover would deepen Samsung’s push into automation and advanced manufacturing.
Meanwhile, the company’s AI ambitions continue accelerating. At CES 2024, Samsung showcased AI-powered refrigerators, televisions, and laptops. On January 17, the Galaxy S24 series arrives with on-device AI features baked in.
Expect more consolidation. Samsung’s survival playbook depends on buying what it cannot build fast enough. Whether robotics or AI startups become the next big trophy remains the open question.
