Samsung looks to use AI and M&A deals to boost stock growth

Samsung Electronics Vice Chairman Han Jong-hee spoke at the company’s 56th regular shareholders meeting in Gyeonggi Province, apologizing to shareholders for the company’s disappointing stock performance. He acknowledged Samsung’s failure to capitalize on the artificial intelligence market and maintain a competitive edge in key sectors, including chips, smartphones, TVs, and home appliances. Han emphasized the need to drive a rebound by enhancing Samsung’s technological edge in AI chips and pursuing a “meaningful” merger and acquisition deal this year.

Han expressed regret over the company’s failure to meet shareholder expectations, attributing the decline in stock prices to challenges in responding to the AI chip market’s rapid evolution and underperformance in key product segments. He assured shareholders that Samsung is committed to enhancing shareholder value and is determined to make necessary changes to achieve this goal, despite the pressure from US tariffs and retaliatory measures.

Vice Chairman Jun Young-hyun of Samsung’s Chip Division admitted that the semiconductor business’s poor performance significantly contributed to the stock decline. He mentioned the company’s initial delay in entering the high-bandwidth memory market but assured shareholders of the company’s ongoing efforts to develop necessary technology. Samsung plans to start mass production of 12-layer HBM3E chips in the second quarter of this year, aiming to catch up in this critical area for AI processors.

In response to Chairman Lee Jae-yong’s call for a “do-or-die” mentality to tackle challenges and regain technological leadership, Han pledged to drive future growth through large-scale M&A deals, particularly in the semiconductor sector. He acknowledged the challenges associated with M&As, including national interest conflicts, regulatory hurdles, and approval issues, but highlighted the company’s commitment to achieving its goals despite these obstacles.

Samsung is preparing various response measures to US tariffs, emphasizing its production facilities in multiple countries beyond those directly affected by US import duties. The company is closely monitoring US policy changes related to semiconductor subsidies and reviewing contingency plans in case promised grants are revoked. Additionally, Samsung appointed new board members and showcased its latest technologies and innovations at the shareholders meeting, including cutting-edge micro-LED screens and advanced robotics developments.

Samsung’s efforts to reignite stock growth through AI advancements, M&A deals, and technological innovations demonstrate its determination to overcome challenges and regain its competitive edge in the market. The company’s commitment to enhancing shareholder value and driving growth in key sectors reflects its proactive approach to navigate the changing business landscape and remain a leader in the industry.