On the sidelines of CES 2025, Samsung’s co-CEO Jong Hee Han commented on possible punitive US tariffs and showed confidence in the display and electronics group’s extensive global supply chain. The development of its own AI platforms and its own connectivity solutions such as Smart Things Pro enable Samsung to operate more resilient on the market.
At CES this week, there is only one elephant in the room: how can the industry react to possible punitive tariffs from the new Trump administration? Most market participants are very concerned about running out of options in the face of punitive tariffs. Consumer and B2B hardware is primarily manufactured in China and displays for North America are often assembled in Mexico. Both countries are threatened with high punitive tariffs under Donald Trump.
According to the daily newspaper Korea Herald, Samsung co-CEO Jong Hee Han commented in a press conference on the sidelines of CES on how Samsung assesses the announced high tariff policy. Han believes Samsung Electronics is prepared to meet the challenges thanks to its strong global supply chain management.
Global production network
Samsung Electronics plans to mitigate the impact of tariffs by using diversified production channels and AI technologies. The digital signage market leader has many international manufacturing sites, which means that production is not centralized in a few countries. This should enable an effective response to the challenges that could arise from the Trump administration’s tariff policy.
Samsung sees its strengths in global supply chain management, from procurement to delivery. By integrating AI technology, the company wants to further increase efficiency and successfully overcome potential difficulties. The further development of its own AI platform should also reduce dependence on OpenAI.
AI and IoT advantage over China’s display manufacturers
Samsung also sees itself well positioned in the intense competition with Chinese display suppliers. Instead of just focusing on hardware, Samsung sees connectivity and AI as a competitive advantage to defend market share. In the past, it was enough to present a “world first” or to be “the biggest” to be the market leader.
But the current generation of devices are good enough in many respects. The focus today is on the added value and user-friendliness that a product can offer. Differentiation is increasingly taking place through software innovations.
