Union Strike Declaration Followed by Inaugural Speech Announcement
Recognizes Semiconductor Crisis, Expresses Determination to Overcome Challenges
"Will Lead to Make Samsung Semiconductor a Source of Pride"
Jeon Young-hyun, Vice Chairman and head of Samsung Electronics' Device Solutions (DS) division, which leads the semiconductor sector, expressed his determination to "analyze the situation more coldly with a new resolve and definitely find ways to overcome difficulties." This statement was made in his official inaugural speech just nine days after stepping in as the semiconductor savior.
In his inauguration speech posted on the company's internal bulletin board on the 30th, Jeon said, "I am confident that the recent difficulties can be overcome quickly if we continue the unique culture of communication and discussion in semiconductors along with the resilience we have built so far."
His inauguration speech drew even more attention as it came just one day after the Samsung Electronics labor union declared its first-ever strike since the company's establishment. Although there were expectations that the inauguration speech might be delayed following the strike decision, it appears that the message to overcome the crisis was deemed necessary amid the growing sense of crisis across the semiconductor business and the increasing union risk.
The speech revealed a strong will to overcome the crisis throughout. Jeon said, "It is very pleasant and exciting to return to DS after seven years since serving as the head of the Memory Business Division," adding, "During that time, I have realized that both the business environment and the company have changed significantly." He further stated, "Above all, I deeply feel that the semiconductor business we are facing is in a much more difficult situation compared to the past."
Samsung Electronics recorded an operating loss of 14.88 trillion KRW in the DS division last year due to the downturn in the memory semiconductor market. Additionally, the company has fallen behind competitor SK Hynix in the high-bandwidth memory (HBM) business for artificial intelligence (AI) and has lost ground in the foundry market, where Taiwan's TSMC holds the top position, leading to a decline in market share and an overall heightened sense of crisis across the business.
Moreover, the nationwide Samsung Electronics labor union, centered on the DS division, declared a strike for the first time in the company's history the day before, further escalating concerns. The strike issue arose at a time when every member of the DS division needs to give their all, indicating a growing sense of semiconductor crisis within Samsung. This is the background behind Jeon's swift efforts to manage the situation.
Jeon was also conscious of the need to quell union dissatisfaction and strengthen internal unity. He said, "I am not only the division head but also your senior," and pledged, "I will take the lead so that Samsung Semiconductor can become a source of pride for all of us." This was interpreted as a declaration that executives, including himself, would lead by example.
Jeon urged that Samsung must not lose its semiconductor leadership amid the rapidly changing AI era. He emphasized, "We are now in the AI era, and a future we have never experienced before is approaching. This presents a great challenge to us, but if we set the right direction and respond properly, it can become an unprecedented new opportunity for the semiconductor business essential to the AI era."
Since taking charge of the DS division, Jeon has been commuting to the Hwaseong plant, receiving business reports from each division, and focusing on formulating future strategies. His immediate urgent task is to pass the quality verification test for the HBM3E 12-layer, the 5th generation HBM product, against US-based Nvidia. Industry attention is also heightened ahead of the foundry forum and SAFE forum hosted by Samsung Electronics next month in Silicon Valley, USA.
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