Samsung and LG Strive to Secure Growth Engines Amid COVID-19 Crisis

[Asia Economy Reporter Dongwoo Lee] The electronics industry is striving to secure future growth engines amid the global economic crisis caused by the spread of the novel coronavirus disease (COVID-19).

According to the industry on the 29th, Samsung Electronics recently completed evaluation by supplying 1 million units of 1st generation 10-nanometer class (1x) DRAM (DDR4) modules applying EUV process to global customers.

The company plans to operate the new EUV-dedicated production line 'V2' in Pyeongtaek from the second half of this year and launch next-generation DRAM products fully applying the EUV process from next year.

Vice Chairman Kim Ki-nam said at this week's shareholders' meeting, "To lead the future in any environmental changes, we will secure business opportunities through continuous technological innovation such as AI-dedicated semiconductors and foldable phones, as well as investment in future growth base technologies like system semiconductors and QD displays."

Samsung Electronics' brand value last year surpassed $60 billion for the first time, ranking 6th with $61.1 billion according to Interbrand's evaluation standards.

LG also has a strategy to prepare for the future by advancing its business portfolio and discovering and nurturing growth engines.

At the end of last year, LG Electronics reorganized its organization to strengthen new businesses and established the CSO division, which integrates new business promotion and strategic functions. To enhance technological capabilities, it also created a Future Technology Center. Work to advance the business portfolio, including artificial intelligence, robotics, and software commercialization, is also underway.

To strengthen risk management, LG affiliates check supply and demand situations in the global market on a daily basis and prepare response plans such as production, supply chain management (SCM), and inventory control.

Accordingly, in preparation for a decline in global sales and prolonged economic recession, LG plans to review the management status of major business divisions and check responses to the changing corporate environment after the COVID-19 crisis.