A few days ago, Samsung released its annual business report for 2024. Surprisingly, the Korean firm saw a decline in its global market share across multiple business segments. Its foundry division, in particular, suffered a massive market share decline, so much so that there are concerns about its future. As the company is facing increasing challenges, Samsung Chairman Lee Jae-yong has urged executives to adopt a โdo-or-dieโ mindset. He also emphasizes the new era driven by artificial intelligence (AI) as an important turning point.
Lee Jae-yongโs video message to executives
According to the YONHAP NEWS AGENCY report, Lee conveyed his message via video to about 2,000 company executives attending education seminars since last month. Interestingly, the Samsung Chairman did not personally appear in the video. Highlighting the urgency of the situation, Lee said in the video, โSamsung is facing a do-or-die survival issue. We need to reflect deeply from the top. We must invest for the future, even if it means sacrificing immediate profits.โ
The video also shared the management philosophies of the late founding Chairman, Lee Byung-chul, and former Chairman, Lee Kun-hee, and emphasized the companyโs need for strategic change. Executives received a small crystal plaque engraved with the phrase: โSamsung people who are strong in crisis, good at reversal and fierce in competition,โ reinforcing the companyโs call for resilience.
Samsung has been facing trouble in the AI semiconductor sector, mainly in high bandwidth memory (HBM). Notably, the company has fallen behind South Korean rival, SK Hynix. US trade restrictions on China have also impacted its business, as Samsung has to abandon its pursuit of securing Baiduโs 2nm AI chip orders.
On top of this, the Korean firmโs other major business divisions, including TVs, smartphones, and dynamic random access memory (DRAM), saw a decline in market share last year. Now, analysts predict a 22.5% drop in Samsungโs first-quarter operating profit in 2025.
