Kim Ki-nam, Vice Chairman and CEO of Samsung Electronics, is speaking at the 51st General Meeting of Shareholders of Samsung Electronics held on the 18th at the Suwon Convention Center in Suwon, Gyeonggi Province. [Photo by Yonhap News]
[Asia Economy Reporter Changhwan Lee] Samsung Electronics expressed confidence in the foundry (semiconductor contract manufacturing) market, which is the next-generation semiconductor growth engine.
Kim Ki-nam, CEO of Samsung Electronics (Vice Chairman and Head of the DS Division), stated at the 51st regular shareholders' meeting held on the 18th at the Suwon Convention Center in Yeongtong-gu, Suwon-si, Gyeonggi-do, "It is true that there is a gap between Samsung's foundry and the large company in Taiwan (TSMC), but in terms of advanced processes, we are by no means behind the Taiwanese company," emphasizing this point.
Vice Chairman Kim said, "Recently, many foundry customers are coming to Samsung," adding, "Through leadership in advanced process competitiveness, we will further develop Samsung Foundry."
He explained, "Last year, the global economy stagnated, and business conditions remained difficult due to sluggish memory market conditions and intensified competition in the set business. The company's operating performance slowed compared to the previous year, recording consolidated sales of 230 trillion won and operating profit of 28 trillion won."
Vice Chairman Kim elaborated, "Despite these conditions, the semiconductor business continued ultra-gap technological innovations such as 10-nanometer class DRAM and EUV 7-nanometer processes. The CE (consumer electronics) division is leading lifestyle innovation with products like QLED 8K TVs, vertical TVs, and Bespoke refrigerators. The IM (mobile phone) division has maintained its number one position in smartphones by launching foldable phones and led the next-generation communication market by commercializing 5G for the first time in the world."
He added, "Through these efforts, in 2019, the company's brand value surpassed 60 billion dollars for the first time, ranking 6th according to Interbrand's evaluation, solidifying its status as a global leading company."
Vice Chairman Kim also explained the company's efforts to enhance shareholder value. He said, "To strengthen responsible management by the board of directors, we appointed an outside director as chairman for the first time, further improving corporate governance. Recognizing the importance of compliance and ethical management, we established a Compliance Committee as an independent external organization, building a strict global-level compliance management system."
He continued, "To lead the future under any environmental changes, we will secure business opportunities through continuous technological innovation such as AI (artificial intelligence) dedicated semiconductors and foldable phones, as well as investments in future growth base technologies like system semiconductors and quantum dot (QD) displays."
Regarding investment plans, he stated, "For system semiconductors, we plan to invest 133 trillion won in research and development (R&D) and production facilities by 2030, and for quantum dot displays, we will actively promote the business and invest 13 trillion won by 2025."
He addressed concerns about the spread of COVID-19, explaining, "We are responding systematically and proactively to minimize global supply chain risks such as production and sales disruptions and impacts on partner companies."
Regarding labor union issues, Vice Chairman Kim responded, "Legal labor activities will be guaranteed," adding, "The company intends to make further efforts to foster a healthy labor-management culture in a more progressive manner."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
