Samsung's Struggle in the AI Era: A Call for Strategic Revamp

Samsung Electronics is under pressure from shareholders due to poor stock performance, failing to capitalize on the AI boom. Co-CEO Han Jong-hee apologizes, and plans major mergers and acquisitions for growth. Samsung struggles with rivals like SK Hynix, TSMC, and Apple, impacting its semiconductor and smartphone segments.

Samsung Electronics is scrutinizing major deals to fuel growth, facing shareholder backlash after lagging behind in the AI boom, causing poor stock performance. The South Korean tech giant has experienced declining earnings and stock values in recent quarters due to losing ground to competitors in advanced memory chips and contract chip manufacturing.

During a recent meeting, shareholders criticized management for not enhancing stock prices, prompting co-CEO Han Jong-hee to apologize for not meeting expectations and for failing to adapt to the quickly evolving AI semiconductor market. Han disclosed plans to extend the stock-based performance plan to employees next year to boost stock prices.

Samsung has acknowledged losing its competitive edge, particularly in semiconductors, where it lags behind firms like SK Hynix. Chairman Jay Y. Lee highlighted the absence of innovative efforts. In response to economic uncertainties, Han announced Samsung's ambition for meaningful mergers and acquisitions by 2025 to address these challenges.

(With inputs from agencies.)