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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:
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.