In a strategic move to secure a leading position in the upcoming 6th Generation (6G) telecommunications technology, Samsung Electronics has recently transferred its Network Business Division’s Research and Development (R&D) unit to Samsung Research. This significant organizational shift is interpreted as Samsung’s intention to enhance its global competitiveness in the telecommunication market.
The transferred R&D unit, which specializes in next-generation communication technologies, Chip (Chip) development, and Radio Frequency (RF) circuit design, comprises approximately 230 experts. These professionals are now integrated into the Next-Generation Communications Research Center at Samsung Research, where they will accelerate the development of 6G technologies. Samsung Research, already a pivotal entity in advancing technologies like 6G, Artificial Intelligence (AI), robotics, and healthcare, is expected to see a substantial synergistic effect from this personnel integration.
Recently, Samsung Electronics Chairman Jay Y. Lee visited Samsung Research, marking his first business move of the year, to review the trends and response strategies in 6G and other next-generation communication technologies, emphasizing Samsung’s focus in this area. According to a report by E-Daily, a Samsung Electronics Network Business Division representative explained that the move to transfer the R&D division was separate from the development department responsible for commercializing 5G technology. It reflects continued demand for specialized 5G networks for businesses and development of high-band millimeter-wave (mmWave) communication equipment operating at 28GHz.
Global market research firm Dell’Oro reports that Samsung Electronics held about 3.2% of the global telecommunications equipment market share in 2022, ranking seventh. This positioning, trailing behind competitors like Huawei, Nokia, and Ericsson, signifies Samsung’s efforts to bridge the gap and strengthen its competitiveness in the impending 6G era.
Dual Insight Analysis:
Positive Aspects:
- Enhanced Technological Leadership: Samsung’s move to focus on 6G technology development can provide an opportunity to secure technological superiority and leadership in the global telecommunications market.
- Long-term Competitive Edge: From a long-term perspective, investment and research in 6G technology could generate new market opportunities and support sustainable growth for the corporation.
Negative Aspects:
- High-Risk Investment: Advanced technology research and development entail high costs and risks. Especially in the early stages of 6G technology, immediate returns on investment may not be guaranteed.
- Intensified Competition: The development of 6G technology signifies intense competition with major global technology firms, presenting a substantial challenge for Samsung.
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