Samsung CEO Warns of Crisis, Calls for Urgent Restructuring

Samsung Electronics chairman Lee Jae-yong has urged the company’s leadership to take decisive action, warning that Samsung is at a critical juncture and must rapidly adapt to new technological challenges.

In a video address to 2,000 top executives, Lee stated that the company faces a survival threat, particularly amid increasing competition in semiconductors and artificial intelligence. He stressed the need for long-term investment, even if it comes at the cost of short-term profits.

Samsung’s biggest challenge is competing in the high-bandwidth memory (HBM) sector, where it has fallen behind SK hynix. The company is also losing ground in key markets:

• TV market share dropped from 30.1% to 28.3% (2023–2024)
• Smartphone market share declined from 19.7% to 18.3%
• DRAM market share fell from 42.2% to 41.5%

With declining sales and HBM production delays, Samsung's financial performance is disappointing analysts, with Q1 2025 operating profit projected to drop by 22.5%.

Lee’s message is clear: Samsung must restructure and fight for leadership—or risk losing its position in the global market.