In an attempt to boost growth, Samsung is preparing for some significant deals after failing to maintain the required pace in the fast growing AI semiconductor industry. At the recent annual meeting, co-CEO Han Jong-hee admitted that the company has not seized the AI boom and therefore the earnings have been poor while the share price has dropped. Shareholders were angry with Samsung for not being competitive in the industry as Hynix and TSMC in High Bandwidth Memory (HBM) chips and chip finding and designing. Han has only apologized for the company’s failures and said that the company would have to acquire other companies to change the trend. Despite announcing a 10 trillion won ($7.2 billion) share buyback plan, Samsung shares have risen but not as dramatically as those of its peers. The year 2025 is expected to be challenging with respect to the economy and regulation, which will limit the availability of semiconductor acquisitions. However, the company is not going to stop at guaranteeing the achievement of ‘tangible results’ through strategic investments. The internal discussions have also revealed some concerns; the company’s chairman, Jay Y. Lee, has asked the company to focus less on preserving the existing system and more on creating new value. Besides the semiconductor issues, Samsung has also suffered from declining market shares in the smartphone segment, which is being captured by Apple and Chinese manufacturers. However, the company is facing more severe issues from the US trade policies, including the chip export to China, which has become its biggest market. To overcome these restrictions, Samsung is to use its global supply chain and may consider new investments in the United States. Samsung is the biggest company in South Korea and has a market capitalization of $235 billion, which makes up 16% of the total stock market capitalization of the country. Samsung has become a stock that almost every Korean investor owns, and thus the company’s next steps are important for the company’s recovery and future development.
Samsung Eyes Major Deals to Revive Performance
