November 21, 2024

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South Korean tech giant Samsung Electronics is stepping up efforts to catch up with the world’s largest network equipment firm Huawei Technologies amid the US government’s global campaign against the Chinese company.

Some local analysts painted a rosy picture for Samsung’s plan to take the lead in the world’s network industry. 

“The emergence of 5G technology and the Huawei issue have offered an unexpected chance for Samsung,” said Park Won-jae, an analyst from Mirae Asset Daewoo.

“Samsung’s network, smartphone and semiconductor businesses will likely generate greater synergies in the latter half than expected,” he added.

The company previously set a goal of achieving 20 percent market share in the global 5G network market by 2020, announcing a plan to invest 180 trillion won ($155billion) in 5G and artificial intelligence businesses.

Samsung’s attempt to lead the 5G market does not seem to be a long shot so far. At an investor relations event on June 26, the company said that it took the largest market share of 37 percent globally from the fourth quarter in 2018 to the first quarter this year.

Speaking at the event, Kim Woo-joon, a marketing executive at Samsung’s network business, dodged a question about whether the recent sanctions on Huawei had benefited Samsung, but said, “We are focusing on rolling out the best products.”

“Since starting a 5G research project in 2009 and conducting field tests and 5G mobility demonstrations in 2014 and 2016, respectively, Samsung has attained world-class technology,” Kim added.

As the 5G market grows, demand for Samsung’s network devices will further increase, according to market analysts.

“Samsung’s network business could see its sales increase by more than 30 percent on-year thanks to rising demand,” said NH Investment & Securities analyst Do Hyun-woo.

By Kim Young-won (wone0102@heraldcorp.com)