Seoul: Samsung Electronics Chairman Lee Jae-yong met with the head of MediaTek, Taiwan's leading fabless semiconductor company, earlier this week to discuss partnership, industry sources said Friday.

According to Yonhap News Agency, Lee met with Rick Tsai, chief executive officer of MediaTek Inc., in Taiwan on Thursday as part of Samsung's efforts to bolster its foundry business in response to soaring chip demand from the artificial intelligence (AI) industry. The meeting is seen as a strategic move by Samsung to strengthen its position in the semiconductor market amidst these growing demands.

The discussions between the two industry giants were also perceived as an effort by Samsung to reassure global partners. This comes after Samsung, the world's largest memory chip maker, reached a critical last-minute agreement with its labor union, thereby averting potential disruptions to the global supply chain.

Industry watchers noted that Samsung and MediaTek likely engaged in detailed deliberations regarding potential partnerships during the high-level meeting. MediaTek, which currently places orders with Taiwan Semiconductor Manufacturing Company (TSMC), is a significant player in the fabless sector. Fabless firms, like MediaTek, design semiconductors without owning the fabrication facilities, while foundries like Samsung manufacture the chips designed by these companies.

Samsung's recent successes include securing foundry orders from major global companies such as Tesla and Qualcomm, indicating its strong foothold and growing influence in the global semiconductor industry.