Tech Giant LG Electronics Focuses on AI-Driven B2B Growth: Data Center Cooling, Smart Factories, and Smart Home Solutions
LG Electronics is setting its sights on significant expansion in the business-to-business (B2B) sector, with a strong focus on artificial intelligence (AI). CEO Lyu Jae-cheol announced plans to make 2026 a pivotal year for the company’s robotics endeavors, highlighting strategic investments in AI-driven solutions for data center cooling, smart factories, and advanced smart home systems.
During the company’s 24th annual shareholders meeting held in Seoul, Lyu emphasized LG Electronics’ commitment to scaling its robotics-related B2B business to capitalize on the rapidly growing global robotics market. The company aims to become a major player in this space by leveraging its existing expertise and technological advancements.
A key element of LG’s strategy revolves around actuators, the critical components that power robots. Lyu expressed confidence in LG’s capabilities, noting that actuators represent a substantial portion (over 40%) of robot production costs.
“Based on our home appliance motor technology and mass-production infrastructure capable of producing 45 million units annually, we will establish ourselves as a key supplier in the robot actuator market,” Lyu stated.
LG’s ambition is to secure a dominant position in the robotics components market, anticipated to reach tens of billions of dollars, by leveraging its existing hardware manufacturing strengths.
Lyu outlined four key strategic directions for future growth: (1) expanding the technology gap in core businesses, (2) focusing on high-margin segments such as B2B and subscription models, (3) fostering new growth drivers including robotics and AI, and (4) implementing a company-wide AI transformation.
Beyond robotics, LG is actively developing AI-powered solutions for data center cooling, smart factory platforms, and next-generation smart home systems as core areas for future growth.
“By combining our unmatched manufacturing capabilities with AI solutions, we will maximize synergies,” Lyu affirmed.
The CEO stressed the importance of integrating artificial intelligence across all organizational processes to optimize productivity by over 30% within the next two to three years.
To address the escalating demand for AI data centers, LG intends to enhance its next-generation cooling technologies, including liquid cooling systems, and to expand data center construction projects through strategic partnerships with its affiliates.
LG is also accelerating its smart factory business, planning to leverage existing orders valued at hundreds of millions of dollars to expand its manufacturing AI solutions into a global B2B offering.
In the home appliance sector, LG aims to evolve towards a comprehensive AI home ecosystem that moves beyond simple device connectivity. Lyu described the future direction as “home orchestration that understands daily life patterns and automatically optimizes the environment.” The company plans to expand its presence in the smart home space through an open ecosystem.
LG expects these AI-driven initiatives to improve design automation, development efficiency, and organizational innovation, leading to reduced costs and improved execution across all business units.
During the shareholders meeting, all proposed agenda items were approved, including financial statements, amendments to the articles of incorporation, and director appointments.
The company also approved a 35% increase in dividends, raising the payout from 1,000 won ($0.66) to 1,350 won per common share. The full cancellation of 6,442 treasury shares acquired during past corporate restructuring was also authorized.
Lyu, who became CEO in November of last year, was newly appointed as an internal director. Professor Seo Seung-woo of Seoul National University’s department of electrical and computer engineering was reappointed as a member of the audit committee.
yeeun
