Samsung Electronics' Ballie artificial intelligence home robot projects an answer to a user's question during a closed-door exhibition at Caesars Palace in Las Vegas, Jan. 5. Yonhap

LAS VEGAS — The rivalry between Samsung Group and LG Group intensified at CES 2025, as affiliates from both conglomerates signaled their ambitions to enter overlapping business sectors in pursuit of new growth opportunities.

Samsung Electronics CEO and Vice Chairman Han Jong-hee said the company will expand its home appliance subscription business to cover smartphones and other upcoming products.

"As we have belatedly started our product subscription business, the focal point will be about expanding the range of choice for customers," Han said during a press conference on Wednesday (local time).

"Though we are a latecomer, our subscription business is showing enormous growth, and several new models will be coming into the subscription program, so you can expect our subscription business to hit its stride."

Samsung Electronics began its subscription service last month, offering its latest TVs, refrigerators, washers and vacuums embedded with artificial intelligence (AI). Han confirmed that the company will also offer subscription programs for its Galaxy smartphones and Ballie, an AI-embedded home robot.

This comes as a challenge to LG Electronics, which has been enjoying handsome earnings through its home appliance subscription business around the world. Last year, LG Electronics' subscription business posted 2 trillion won ($1.37 billion), up 75 percent from a year earlier.

LG Electronics CEO Cho Joo-wan said in a press conference on Thursday that "there will be competition," but he is "viewing it in an optimistic way because the market will expand."

"Our clear strength is that we have over 5,000 care managers, each of whom is an expert in caring for subscribed appliances," Cho said. "Subscription isn't simply an installment plan — it is about care. Our strength comes from the expertise, network and experience of our care managers."

LG Electronics' Q9 self-driving AI home hub is on display during the company's CES 2025 media day event at Mandalay Bay in Las Vegas, Monday (local time). EPA-Yonhap

Robotics is also a new sector for their competition, as the two companies confirmed their AI home robots — Samsung's Ballie and LG's Q9 — will be released in the market within this year.

During the press conference, the two CEOs said robots will be a core focus in the future and predicted that humanoid robots will take the center stage in the robot industry.

Citing Samsung Electronics' recent investment in a robotics subsidiary, Han said the global industry's "plans for humanoids is picking up speed" and "Samsung also should accelerate its humanoid plans."

LG Electronics CEO Cho also picked humanoid robots as the company's future goal, noting that the company considers increasing its stake in a robotics firm it invested in last year.

Reporters listen to presenter at LG Innotek's booth for CES 2025 at the Las Vegas Convention Center, Tuesday (local time). Yonhap

Electronic parts maker LG Innotek is also heralding a competition with its rival Samsung Electro-Mechanics over parts for semiconductor substrates including flip chip-ball grid array (FC-BGA) substrates and glass substrates.

During an interview on the sidelines of CES 2025, LG Innotek CEO Moon Hyuk-soo said the company began mass-producing its FC-BGA substrates toward a major North American tech company.

"Since we are a late starter, our FC-BGA production capacity accounts for a small portion in the global production capacity," Moon said.

"Based on our knowhow and expertise in camera modules, however, we have achieved a very high level of automation in plants, which will improve our efficiency and yield in FC-BGA production in several years. When we reach that level, we will have greater cost competitiveness as well as higher yield (than Samsung Electro-Mechanics)."

Samsung Electro-Mechanics CEO Chang Duck-hyun speaks during a press conference at the Encore at Wynn hotel in Las Vegas, Thursday (local time), on the sidelines of CES 2025. Courtesy of Samsung Electro-Mechanics

FC-BGA is a package substrate used for high-performance microprocessors, graphics processing units and chipsets, thus seeing increasing demand due to the global boom for AI processors. With Japanese and Taiwanese component makers leading the global market, Samsung Electro-Mechanics has been closely trailing them, while LG Innotek commenced its FC-BGA business in 2022.

While LG Innotek is heralding a pursuit, Samsung Electro-Mechanics CEO Chang Duck-hyun expressed his confidence in the company's FC-BGA business. He told Yonhap News Agency Friday that the company is "in negotiation with global big tech firms on FC-BGA," hinting that "they are AI server and cloud businesses."

In a press conference a day earlier, Chang said Samsung Electro-Mechanics will begin mass-producing glass substrates in 2027, saying "we will supply samples to two to three clients."

Glass substrate is a next-generation chip substrate, which will likely be a breakthrough in the current situation that the miniaturization of semiconductor manufacturing is nearing its limits.

Compared to conventional substrates, glass substrates offer a smoother surface, allowing ultra-fine circuit patterns to be transferred on the surface. This results in semiconductor speeds increasing by up to 40 percent, while power consumption can be reduced by half.

LG Innotek CEO Moon also noted that glass substrates will be the mainstream for server chips, and the company will begin producing samples in the latter half of this year.

SK Group Chairman Chey Tae-won, second from right, listens to a presenter during his visit to SK Group's booth for CES 2025 at the Las Vegas Convention Center, Thursday (local time). Yonhap

Other than Samsung and LG, SK Group's materials unit SKC appears to be taking an early lead in the glass substrate market.

On Wednesday, SK Group Chairman Chey Tae-won visited the group's booth at CES 2025 and stated that he "just sold" SKC's glass substrates, implying that the company has already secured a client despite being in the pre-mass production phase. It is speculated that Chey had a meeting with Nvidia CEO Jensen Huang just before visiting the booth.