Home Business “The harsh reality of the market” What does Vice Chairman Lee Jae-yong mean?

“The harsh reality of the market” What does Vice Chairman Lee Jae-yong mean?

by news dir

[이코노믹리뷰=최진홍 기자] Samsung Electronics Vice Chairman Lee Jae-yong returned from a business trip to the United States on the 24th through Gimpo Airport. It’s my first business trip to the US in 5 years.

Vice-President Lee took this trip to the United States to be meaningful in that he has consolidated networks and partnerships for global management. “It was a good business trip to talk about the future with business partners,” he said.

During a business trip, Vice Chairman Lee visited Verizon, Microsoft, Google, Amazon, etc., and also met with key officials from the US Congress and the White House to talk about semiconductor global supply chain issues and support incentives. Although it has not been disclosed to the public, it seems that various possibilities have been explored in meetings with executives of Qualcomm, AMD, Nvidia, and Apple.

However, Vice Chairman Lee left a comment on his return home, saying, “My heart is heavy to see the harsh voices and harsh reality of the field.”

It is not known what the vice president’s intentions were in making these statements. However, it is being said that although great achievements were made in terms of building a network for global management, the sense of crisis of Vice Chairman Lee, who portrays New Samsung, grew in proportion to that.

Vice Chairman Lee Jae-yong returns to Korea. source = news


Historic US business trip, but

During a business trip to the United States, Vice Chairman Lee held a series of business meetings with local political and financial figures to complement the global network. On the 22nd (local time), after meeting CEO Sundar Pichai at Google’s headquarters in Mountain View, California, USA, DSA (Device Solutions America), Samsung Research America (SRA), a semiconductor and set research institute located in Silicon Valley, California He also visited and met with executives and staff.

The highlight of the business trip is the determination of the site of the US semiconductor plant.

Samsung Electronics announced on the 23rd (local time) at the Texas governor’s residence in the United States, with the participation of officials including Samsung Electronics Vice Chairman Ki-Nam Kim, Texas Governor Greg Abbott, and Senator John Cornyn as the site of a new foundry plant. announced that it was drawn. Construction of the new line will start in 2022 and operation is targeted for the second half of 2024. It is explained that it will produce various system semiconductors such as 5G, HPC (High Performance Computing), and AI (Artificial Intelligence).

Just as Samsung Electronics’ memory semiconductor myth began in 1983 after the late Samsung Group founder Lee Byung-cheol announced his Tokyo declaration, in 2021, Vice Chairman Lee Jae-yong led the announcement of the $17 billion Taylor factory site announcement, which made Samsung Electronics surpass the number one in the global memory semiconductor market. It is expected to become an important turning point in the system semiconductor market such as foundries.

However, it is said that this trip to the United States paradoxically reveals the harshness of the US-China war for hegemony, while contributing to deepening concerns about the super-gap strategy that supported Samsung.

In fact, as the war for supremacy between the United States and China is fierce, the two superpowers are repeating warlords around semiconductors. Samsung Electronics is also caught up in the torrent. The US is forcing its own semiconductor supply chain and demanding the provision of key secrets, or China is putting a brake on the semiconductor flow in countries that are leaning too much toward the US.

This is why Vice Chairman Lee met key figures related to the semiconductor supply chain while he was busy on a business trip to the United States. However, the industry expects that there will be a lot of pending issues that cannot be solved by Vice Chairman Lee alone. It is the harsh reality of the market, which is governed by the logic of power in the flow of war for hegemony.

There are also concerns about the future of the super-gap that has supported Samsung. Vice Chairman Lee visited DSA and SRA and met with executives and employees, saying, “We cannot get through a huge transition by just chasing or widening the gap with the companies that are following. Let’s make it,” he urged.

It means that we are aiming for a new technology quantum jump that crosses the super-gap. In the process, it is analyzed that Vice Chairman Lee’s concerns toward New Samsung are deepening.

“Job export? Too bad”

While Vice Chairman Lee’s business trip to the United States is over, industry experts point out that “Korea’s infrastructure is still insufficient.”

It is worth paying attention to the motive for Samsung Electronics to build a factory in Taylor.

The reason Samsung Electronics decided to build a factory in Taylor is because it has advantages such as being close to the Austin factory, easy to absorb talented people, and using abundant industrial water.

The decisive background is unconventional incentives. The Taylor City Independent School District guarantees an additional $300 million in tax relief, while reimbursing up to 90% of property taxes over 30 years. Williamson County also promised a 90% return on property taxes for 10 years and an 85% refund for the next 10 years. In addition, if the semiconductor support incentives pending in the US Congress are passed, they can receive huge subsidies.

Taylor’s isn’t a loss-making business either. 6,500 workers are expected to work during the construction of the factory, and 2,000 jobs will be created when the factory is completed. Thousands of additional jobs, directly or indirectly related, are expected to be created. Naturally, the big picture at the federal level of the US-centered semiconductor supply chain strategy is also completed.

How about Korea? In the case of Samsung Electronics’ Pyeongtaek plant, the operation of the plant has been delayed due to opposition from residents, and the Yongin semiconductor cluster, which was ambitiously developed by the government, is also sluggish due to opposition from residents. It is said that the start of construction within this year has crossed the water. In May, the Special Act on Semiconductors was proposed, but the possibility of passing the plenary session is decreasing, and even that law is becoming a raging bill.

In the business world, Vice Chairman Lee met and exchanged with a number of political and business figures during a business trip to the United States to check the scene of the severe U.S.-China hegemony, and it is likely that he was deeply concerned about New Samsung’s strategy. Some say that the move of local governments in the United States to attract foreign factories with unconventional incentives and the sluggish situation in Korea overlap. As an extension of that, the fact that there are many restrictions on the management activities of Vice Chairman Lee, who is still on parole, is being talked about again.

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