SEOUL (ANN/THE KOREA HERALD) – Samsung Electronics’ top executives apologised to shareholders on Wednesday for the company’s poor stock performance, acknowledging its failure to capitalise on the artificial intelligence boom and maintain a competitive edge in key businesses, especially chips.
Facing tough questions from shareholders at this year’s annual meeting, Vice Chairman and co-CEO Han Jong-hee vowed to make a “painstaking effort” to drive a rebound by enhancing Samsung’s technological edge in AI chips and pursuing a “meaningful” merger and acquisition deal this year.
“Escalating pressure from US tariff policies and retaliatory measures from affected countries has also had a negative impact. Despite these challenges, we are fully committed to enhancing shareholder value and will spare no effort in making necessary changes to achieve this goal.”
Samsung Electronics’ stock price, which hovered around KRW70,000 (USD48) in March last year, has since declined to the KRW50,000 range, frustrating investors.
On Wednesday, the tech giant’s stock prices edged up 1.56 per cent to close at KRW58,500.
Chip woes
Samsung’s Chip Division head, Vice Chairman Jun Young-hyun, admitted that the semiconductor business’ poor performance was a key factor behind the stock decline.
While Samsung remains the world’s largest memory chip maker by revenue, it has been lagging behind its smaller rival SK hynix in HBM chips, a high-value component critical for AI processors.
“We will do our utmost to meet shareholder expectations in our HBM business, with all employees working together to ensure we do not repeat past mistakes.”
Jun added that Samsung will start mass production of 12-layer HBM3E chips in the second quarter of this year or in the second half at the latest. He also noted that the company expects to mass-produce next-generation HBM4 and custom HBM chips in the second half of the year.
‘Do-or-die’ strategy
The executives’ commitments come a day after Samsung Electronics Chairman Lee Jae-yong delivered a rare, direct message, urging employees to adopt a “do-or-die” mentality to tackle mounting challenges and regain technological leadership.
At the shareholders’ event, Han also pledged to drive future growth through large-scale M&A deals in the semiconductor sector this year.
Regarding increasing pressure from US tariffs, Han explained that Samsung is preparing various response measures, emphasizing that the company operates production facilities in multiple countries beyond Mexico and China, which are directly affected by US import duties.
Samsung is also closely monitoring US policy changes related to semiconductor subsidies and is reviewing contingency plans in case the Trump administration revokes previously pledged grants, Han said.
At Wednesday’s event, the company’s external board member Shin Je-yoon, former chairman of Financial Services Commission, was approved to assume the role of Samsung’s board chair. Samsung Vice Chairman Jun Young-hyun and Song Jae-kyuk, Samsung’s chief technology officer for the chip division and head of the Semiconductor Research Center, were also appointed as new internal board members following shareholder approval.
Meanwhile, Samsung set up exhibition booths at the venue, where around 900 shareholders attended, showcasing its latest technologies and business innovations. The exhibition featured cutting-edge micro-LED screens, a four-legged defense and counterterrorism robot developed by Rainbow Robotics, and Ballie, a ball-shaped personal home assistant robot.
