Samsung Electronics Joins U.S. Healthcare Initiative

Samsung Electronics has been confirmed as the only domestic tech company to participate in the next-generation public-private healthcare program promoted by U.S. President Donald Trump. Analysts suggest that Samsung, which has been driving related businesses including recent acquisitions of U.S. healthcare companies, has created an opportunity to play a significant role in the future restructured U.S. healthcare industry landscape alongside the new program.

According to industry sources on Sept. 14, Samsung Electronics attended the “Make Health Tech Great Again (MHTGA)” event hosted by President Trump at the White House in late July as the sole Korean tech company. The event was organized to create a new health tracking system by combining big tech technology, medical institution data, and healthcare solution companies’ capabilities under public leadership. The goal is to make it easier for U.S. patients to access health records and for medical institutions to improve service quality and efficiency, thereby alleviating the high-cost structure of U.S. healthcare.

The event was attended by about 70 representatives from leading U.S. big tech companies such as OpenAI, Google, Apple, Microsoft and Amazon, as well as U.S. hospitals, healthcare solution companies, and insurance companies. Samsung Electronics was represented by Park Heon-soo, head of the Digital Health Team in the Mobile Experience (MX) division. Discussions included the integration of dispersed healthcare systems and expanding compatibility between existing systems and IT devices.

By securing a place in a project centered on U.S. companies and medical institutions, Samsung Electronics has gained an advantageous position in the future restructured U.S. industry landscape. The United States is the world’s largest market with a healthcare market size of $4.9 trillion (approximately 6,821 trillion won) as of 2023, and it leads in AI technology that adds value to big tech and healthcare providing health devices.

Chinese competitors were excluded from this project, which will serve as a weathervane for the global healthcare industry. Although Chinese companies do not have a high proportion of U.S. business, they have been increasing their presence globally with their unique cost-effectiveness strategy. Their exclusion from this project is seen as a positive factor for Samsung Electronics. According to market research firm Counterpoint Research, Huawei grew 35% year-on-year in the global smartwatch market last year, capturing a 13% market share and widening the gap with Samsung Electronics, which held 9% in third place. Xiaomi grew by a remarkable 135% year-on-year, catching up to Samsung Electronics by a 1 percentage point difference.

An industry insider analyzed, “Unlike Apple with a different operating system, Chinese companies use the Android OS, making them strong rivals to Samsung. Their exclusion is advantageous. The U.S. market sets the standard for the global healthcare market, so success here can lead to advantages in future global competition.”

Samsung Electronics designated the medical device business as one of its five new growth businesses along with bio and batteries in 2010 during the era of the late Chairman Lee Kun-hee, but did not achieve notable results. However, the atmosphere has changed as AI has been introduced as the central axis of healthcare and synergy with various IT devices has been highlighted. This has opened up opportunities for Samsung Electronics to discover new businesses by applying its IT device capabilities to healthcare.

Samsung Electronics’ investment in healthcare businesses is also rapidly increasing. In May last year, it acquired Sonit, a French AI medical device startup, and last month, it purchased all shares of Zells, a U.S. digital healthcare company. In September last year, it also presented “MedTech” (combination of medical devices and technology) as one of its four growth keywords.

The scope of linkage with Samsung’s existing businesses is also expanding. The “Galaxy Watch 8” released by Samsung Electronics last month features the world’s first wearable sensor capable of measuring the antioxidant index. The strategy is to pursue a connected care business that links the wellness field, which takes care of daily health through Samsung wearable products such as Galaxy Watch, Galaxy Buds, and Galaxy Ring, with the medical field.