Lee Jae-yong urges focus on technology, saying Samsung faces 'life-or-death' crisis

By Candice Kim Posted : March 17, 2025, 16:11 Updated : March 17, 2025, 16:11
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Samsung chairman Lee Yonhap
Samsung Electronics Chairman Lee Jae-yong/ Yonhap

SEOUL, March 17 (AJP) - Samsung Electronics Chairman Lee Jae-yong has called on the company’s executives to tackle mounting internal and external challenges, warning that the firm faces a “life-or-death survival problem."

Lee delivered this message via a video presentation at a forum attended by approximately 2,000 executives across Samsung affiliates. The chairman underscored the necessity of introspection among the leadership, urging them to prioritize long-term investments over short-term financial gains.

“The management team must reflect thoroughly,” Lee said in his three-minute address.

He reiterated his long-held belief in the primacy of technology, stating, “The first is technology, the second is technology, the third is technology.”

He emphasized that maintaining Samsung’s tradition of investing in innovation is critical to the company’s future.

Samsung Electronics has seen its market share decline across key business segments. The company’s share of the DRAM market slipped from 42.2 percent in 2023 to 41.5 percent last year. Its smartphone market share dropped from 19.7 percent to 18.3 percent, while its TV market share fell from 30.1 percent to 28.3 percent.

Compounding these challenges, Samsung has faced delays in entering the high-bandwidth memory (HBM) market, a critical sector for AI semiconductors.

The company plans to supply redesigned HBM3E 8-layer products to Nvidia by the end of March, with mass production of HBM4 products expected in the latter half of the year.

In response to these headwinds, Samsung established a Management Diagnosis Office under its research arm, Samsung Global Research, in late 2024.

The office, led by President Choi Yoon-ho, aims to spearhead diagnostic and innovation efforts across the conglomerate.

Additionally, the company has restructured its Device Experience (DX) division, transitioning the “New Business Task Force” into a permanent New Business Team. This unit will oversee future business investments, including medium- and long-term mergers and acquisitions.
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