Samsung Elec, Naver tie up for smart building business

Samsung Electronics Co., the world’s largest memory chipmaker, and Naver Corp., South Korea’s online giant, have joined hands to develop intelligent office building solutions, an emerging area in the business-to-business (B2B) market, expanding their cooperation in high-tech sectors starting from artificial intelligence semiconductors and generative AI.

Samsung said on Monday it signed a memorandum of understanding with Naver Cloud, a subsidiary of the portal behemoth, for the future intelligent office building business, which provides services on integrated building controls as well as energy and security management. This allows companies to automatically check if their employees come to work when they park cars at the building while offering customized workplaces for each staff, for example.

The collaboration comes as integrated building solutions grow in importance with more companies focused on improving productivity.

The global market for building management systems, a part of the intelligent building business, was expected to more than triple to $47.6 billion by 2030 from $14.2 billion last year, according to industry research firm Data Intelligence.

GLOBAL BUSINESS

Samsung and Naver plan to gradually expand the business into other countries after targeting the local market.

The electronics maker has secured advanced technology on the connection of various gadgets and communication, while the online platform operator has commercialized a state-of-the-art building solution through its new headquarters tower. Naver also won a $100 million deal to develop a digital twin platform for Saudi Arabia last month.

Samsung and Naver aim to realize calm technology, a type of information technology where the interaction between the technology and its user is designed to occur in the user's periphery rather than constantly at the center of focus.

Through the technology, the two companies plan to connect and effectively manage all devices and services in buildings, as well as provide internal and external solutions.

The two partners are set to cooperate on special service packages for the B2B customers and marketing in the domestic market with an aim to collaborate for overseas countries based on success at home.

INCREASING COLLABORATION

Samsung and Naver have been expanding their cooperation in high-tech industries, especially in the AI sector.

The two tech companies agreed to strengthen their collaboration to develop semiconductor solutions dedicated to AI in December 2022 as they aim for a new semiconductor solution to improve the data processing of AI systems and maximize power efficiency.

Samsung is expected to introduce an AI chip for Naver soon, which will enhance Naver’s hyperscale AI service including HyperCLOVA X.

The two partners have also been working on generative AI services together. Naver is scheduled to launch an AI service designed for Samsung’s semiconductor business employees next month. Samsung staff in the business is predicted to improve productivity by utilizing generative AI without security concerns.

Based on the service, Naver is likely to secure generative AI deals from other companies at home and abroad.

Write to Jeong-Soo Hwang at hjs@hankyung.com
 
Jongwoo Cheon edited this article.