Samsung’s Big Comeback? CEO Promises Bold Moves to Revive Growth

Struggling Against Rivals, Samsung Eyes Major Deals to Reclaim Market Lead

Samsung Electronics is gearing up for a major transformation as it faces mounting pressure from shareholders over its poor stock performance and declining market position. At its annual shareholder meeting, the South Korean tech giant acknowledged its struggles but promised bold steps to regain its competitive edge.

Samsung’s AI and Chip Struggles: What Went Wrong?

Once a dominant force in the global tech industry, Samsung has recently faced stiff competition on multiple fronts. In the AI-driven semiconductor space, it has fallen behind SK Hynix in producing high-bandwidth memory (HBM) chips, which are essential for AI-powered applications. Additionally, it has lost market share in contract chip manufacturing to Taiwan’s TSMC, while Apple and Chinese brands continue to erode its dominance in the smartphone market.

At the shareholder meeting, Samsung’s co-CEO Jun Young-hyun admitted the company was slow in recognizing key market trends, leading to missed opportunities. “We were late in reading the market trends and missed out on the early AI boom,” he said.

Shareholder Frustration: A Call for Action

Samsung’s struggles have not gone unnoticed by investors. In 2024, the company’s stock dropped nearly 33%, reaching a four-year low, while rival SK Hynix saw a 26% rise. This performance sparked anger among shareholders, many of whom called for immediate action to revive stock prices.

“The stock performance has been disappointing,” said a 65-year-old shareholder identified as Lee. “Last year, the stock price was so bad that I even considered moving my investments to U.S. stocks.”

In response, Samsung’s leadership outlined plans to address these concerns, including an expansion of stock-based performance incentives for employees. The company also launched a $7.2 billion share buyback program to stabilize its stock.

Samsung’s Bold Plan: Mergers, Acquisitions, and AI Investments

Samsung’s leadership admitted that 2025 will be a tough year due to global economic uncertainties, but emphasized that strategic mergers and acquisitions (M&A) are on the horizon.

“We are determined to produce some tangible results this year,” said co-CEO Han Jong-hee, hinting at potential acquisitions despite regulatory hurdles.

Reviving the Semiconductor Business

Samsung has set its sights on catching up in the AI chip race. It is investing heavily in HBM chip production to challenge SK Hynix’s dominance and regain its foothold in AI-driven semiconductors.

“We are making 2025 the year when we recover our fundamental competitiveness,” Jun reassured investors.

U.S.-China Trade War: A Double-Edged Sword for Samsung

Samsung faces another challenge in the form of increasing U.S. restrictions on chip exports to China. The company has been benefiting from a surge in demand for its chips in China, as firms stockpile ahead of potential trade bans. However, tighter restrictions from Washington could hurt Samsung’s largest market.

At the same time, the Biden administration’s CHIPS Act is set to benefit Samsung, as the company is among the recipients of multi-billion-dollar subsidies to boost semiconductor production in the U.S.

Can Samsung Turn Things Around?

Despite its challenges, Samsung remains South Korea’s most valuable company, with a market capitalization of $235 billion, accounting for 16% of the country’s total stock market value. Nearly 40% of South Korean investors own Samsung shares, underscoring the company’s significance.

With a renewed focus on AI chips, aggressive mergers and acquisitions, and strategic stock buybacks, Samsung is betting big on a comeback. The question remains—will these efforts be enough to reclaim its throne in the global tech industry