Samsung plans to utilize AI technology and pursue mergers and acquisitions to boost stock growth.
Samsung Electronics executives expressed regrets to shareholders during the 56th annual meeting at the Suwon Convention Center in Gyeonggi Province over the company’s lackluster stock performance. They admitted that Samsung failed to keep up with the booming artificial intelligence sector and stay competitive in key businesses, especially in the chip industry. Vice Chairman Han Jong-hee assured investors of concerted efforts to bolster Samsung’s technological prowess in AI chips by potentially engaging in significant merger and acquisition activities this year.
Apologizing for the stock price not meeting shareholder expectations, Han Jong-hee acknowledged the company’s shortcomings in responding effectively to the fast-changing AI chip market. He also emphasized that essential product segments like smartphones, TVs, and home appliances did not deliver satisfactory results in recent years. Han Jong-hee added that challenges from US tariff policies and retaliatory actions from impacted nations further exacerbated the company’s performance. Despite these setbacks, Samsung remains dedicated to enhancing shareholder value through strategic adjustments.
Over the past year, Samsung’s stock price dwindled from around 70,000 won to the 50,000 won range, disappointing investors. However, on the day of the shareholders’ meeting, the stock showed a slight increase of 1.56 percent, closing at 58,500 won. Recognizing the semiconductor business’s underperformance as a primary factor behind the stock decline, Vice Chairman Jun Young-hyun of Samsung’s Chip Division pointed out that missed opportunities in entering the early high-bandwidth memory market had repercussions. Although lagging behind smaller competitor SK hynix in HBM chips, Samsung has restructured its operations and laid the groundwork for the necessary technology advancements.
To address shareholder expectations in the HBM sector, Samsung plans to commence mass production of 12-layer HBM3E chips in the upcoming months, with potential launches of next-generation HBM4 and custom HBM chips later in the year. In light of these efforts, Samsung aims to avoid repeating past mistakes and meet the high demands of the market. Additionally, Chairman Lee Jae-yong recently urged Samsung employees to adopt a determined mindset to surmount challenges and regain technological leadership, setting a ‘do-or-die’ approach to tackle future obstacles head-on.
Looking ahead, Vice Chairman Han Jong-hee outlined plans for large-scale M&A endeavors in the semiconductor field to drive growth. Despite obstacles such as national interest conflicts and regulatory approvals, Samsung remains resolute in its pursuit of meaningful M&A deals to bolster its market position. Moreover, Samsung is devising response measures to counter the impacts of US tariffs and closely monitoring policy changes related to semiconductor subsidies. The company operates production facilities in various countries beyond those directly affected by US import duties, aiming to navigate potential disruptions seamlessly.
At the shareholders’ meeting, Samsung introduced new board members, including external board member Shin Je-yoon, former chairman of Financial Services Commission, as the board chair. Samsung’s commitment to innovation and growth was spotlighted at the exhibition area, where attendees could explore the latest technological advancements and business innovations such as cutting-edge micro-LED screens and state-of-the-art robots like Rainbow Robotics’ defense robot and Ballie, a home assistant robot in a ball-shaped design.
