Home Business [이재용 역할론 부상①] Samsung watch stopped… The urgent need for future growth engines such as investment

[이재용 역할론 부상①] Samsung watch stopped… The urgent need for future growth engines such as investment

by news dir

As the uncertainty surrounding Samsung Electronics continues, voices are constantly coming out, mainly from the business community, that the problem of a headcount vacancy must be resolved.

This is because, in addition to protecting the competitiveness of the semiconductor industry, it is expected that it will find a way out for the stagnant local economy as well as the entire domestic economy. In particular, it is an explanation that it is an urgent need for leadership, which has provided full support in times of national economic crisis and corona emergencies.

According to the business world on the 3rd, attention is focused on whether Samsung will get out of the worst situation of ‘absence of a general manager’ two weeks before Liberation Day.

The situation that Samsung, the No. 1 company in the business world, is in is not easy. The sense of crisis is heightening as the novel virus infection (COVID-19) continues and competitors are chasing. However, given the prolonged absence of the chief executive, it is difficult not only to respond, but also to prepare for the future.

If you look at the share price of Samsung Electronics, you can see that this situation is being reflected. Samsung Electronics’ stock price is struggling despite its record-breaking performance of 12.57 trillion won in operating profit in the second quarter. It peaked at 96,800 won during the market on January 11th, but soon fell to 80,000 won and is currently locked in the 70,000 won range. The stock market is also predicting that it will fall to the 60,000 won level.

This is because, despite the announcement of expansion of investment by the global semiconductor industry, Samsung Electronics’ development of a growth engine is sluggish.

Samsung Electronics announced its goal of becoming the No. 1 in system semiconductors by 2030. However, the gap with TSMC is not being narrowed easily, and even Intel has been chasing after an aggressive investment in the foundry market.

TSMC is showing a clear gap with Samsung Electronics in the recently announced results following the announcement of a large-scale investment plan in the US. TSMC posted an operating profit of $5.21 billion (about 5.93 trillion won) in the second quarter. Compared to Samsung Electronics, which is expected to have an operating profit of around KRW 1 trillion in the non-memory sector in the second quarter, TSMC’s position is solid.

Intel announced that it would re-enter the foundry sector and that it would catch up with TSMC and Samsung Electronics.

Intel announced that it would enter the foundry business in March and announced an investment of 22 trillion won. has been to

In addition, at a recent technology briefing, he revealed a roadmap for expansion of the foundry business and stated that he would regain its leading position in the industry by 2025. To this end, Intel announced that it plans to introduce next-generation equipment from ASML in the Netherlands, which projects the chip design on silicon as if printing a photo as early as 2025. In particular, it aims to mass-produce ’20A’ at the level of 2 nanometers in 2024 and ’18A’ in 2025. 18A is 1.8 nanometers. Taiwan’s TSMC, the number one in the global foundry market, and Samsung Electronics, the second largest, are aiming to mass-produce 3-nano process products in 2023.

Accordingly, it is analyzed that large-scale investments, including M&As, are needed to secure the future of Samsung Electronics. This is why some argue that the return of Vice Chairman Lee, who will guide Samsung’s future business direction, is urgently needed.

The person responsible for strategic decisions, such as setting the direction of the company and discovering future growth opportunities, is the general manager, not the professional manager. Daily management can be decided at the level of professional managers, but it is the responsibility of the general manager, such as large-scale mergers and acquisitions, business restructuring, and recruitment of global core talent.

This is not limited to Samsung. If you look at other conglomerates such as LG, SK, and Hyundai, you can see how important the role of the CEO is to business direction and growth.

In the case of LG, it is accelerating its top-line expansion by actively investing in electronics and AI, centering on Chairman Koo Kwang-mo. In SK, Chairman Chey Tae-won is actively strengthening future businesses such as batteries and hydrogen.

At the same time, the voices of expectations for the role of Vice Chairman Lee to solve the current crisis situation in Korea, such as COVID-19, are growing in the business world.

In fact, at the time of the mask crisis last year, Samsung, led by Vice Chairman Lee, secured filter materials from overseas and played a big role in resolving the situation by transferring manufacturing technology to smart factories. After that, Samsung provided treatment facilities, dispatched medical staff, and provided an emergency fund of 30 billion won. It also played a major role in the development of a least-residual (LSD) syringe that improves the efficiency of COVID-19 vaccination.

Vice Chairman Lee is also known to have helped Pfizer and the Korean government negotiate a vaccine against COVID-19 using his global network. In 2019, when Japan decided to restrict exports of semiconductor and display materials, Vice Chairman Lee flew to the country and tried to resolve the situation.

In the business world, it is expected that Vice Chairman Lee can have a positive impact not only on Samsung’s projects but also on the overall national economy, given that Vice Chairman Lee has traveled the world and built close acquaintances with top national figures and CEOs of global companies.

An official from the business world said, “Compared to other large companies, Samsung Electronics is quiet.

Please enable Javascript to write comments in the library.

Related Articles

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.