Samsung's Struggle Amid AI Boom: Investor Concerns and Future Plans

Samsung Electronics is facing challenges amid an AI boom, with shareholders expressing concerns over its performance in memory chips and chip manufacturing. Despite its status as South Korea's most valuable company, Samsung is pursuing mergers and acquisitions to regain its technological edge and boost its share value.

Samsung Electronics is grappling with investor scrutiny as it struggles to capitalize on the current artificial intelligence boom, a factor contributing to its position as one of last year's lagging tech stocks.

The South Korean giant, renowned for its electronics division, has been weathering turbulent times with declining earnings and dwindling market shares, particularly in advanced memory chips and contract manufacturing. Internal sources have highlighted Samsung's lost ground to competitors like SK Hynix, especially in high bandwidth memory crucial for AI.

Chairman Jay Y. Lee has addressed these challenges, expressing concerns over the lack of innovation and a tendency towards maintaining the status quo. Samsung plans meaningful mergers to overcome economic uncertainties in major markets and regain its competitive edge.

(With inputs from agencies.)