News
Samsung vows faster innovation, issues surprise apology
Samsung issued a rare apology shortly after announcing the 3Q24 earnings estimation. The frank apology comes from the newly appointed Head of DS Division and VC at Samsung Electronics, Yong-Hyun Jeon.
Through a press release, Samsung’s leadership extended its deepest apology to customers, investors, and employees. The announcement highlights several potential decisions as part of reclaiming the edge in the mobile industry.
Samsung VC’s statement:
“We have fallen short of market expectations, causing concern not only about our fundamental technological competitiveness but also about the future of our company.”
“Many people have expressed concerns about Samsung’s current crisis, and we take full responsibility for it as the leaders driving our business.”
Samsung’s operating profit declined by 12.84% compared to the previous quarter. The company managed to increase its sales in Q3, but it fell short of expectations. The company eventually failed to secure significant growth despite the AI boom.
Samsung reiterates its commitment to turn crises into opportunities through challenges, innovation, and perseverance. The company’s leadership team will take the lead in overcoming this crisis, the Newsroom post states.
Potential decisions eyeing long term growth:
- Samsung will restore our fundamental technological competitiveness.
- Samsung will ensure fundamental competitiveness.
- The development of new technologies that do not yet exist in the world and achieving unparalleled quality are the only ways for Samsung to rise again.
Preparation before deployment:
- Samsung will pave the way forward, reigniting the passion it’s known for.
- Samsung won’t adopt a mindset of merely defending anymore, but it will realm itself with a spirit of challenge, racing toward even higher goals.
Organizational reshuffle:
- Samsung said to closely re-examine the organizational culture and working methods as well as immediately correct anything that needs fixing.
- When the company identifies issues in the field, it will openly discuss and fiercely debate them to drive improvements.
News
Samsung’s largest Experience Store promises immersive tech showcase
Samsung launched its largest Experience Store in Gurugram, India. Located at DLF CyberHub, Samsung’s Gurugram Experience Store promises an immersive, cutting-edge technology showcase.
This sprawling 3,000-square-foot space is where consumers can immerse themselves in Samsung’s most advanced mobile and connected technology offerings.
Samsung says its Gurugram Experience Store is designed to cater to the city’s tech-savvy and innovation-driven community, where visitors can experience hands-on interaction with:
- Flagship smartphones
- Wearables
- Audio devices
- SmartThings ecosystem
Samsung invites all tech enthusiasts, shoppers, and innovators to visit the new Experience Store and explore the best in mobile technology, connected solutions, and personalized services.
Special offers for early visitors:
Samsung also announced special offers for early visitors, including the Galaxy Fit3 at INR 1,999 on select Galaxy purchases and double SmartClub points on all transactions.
News
Shocking! Samsung may cut Foundry workforce by 30%
Samsung considering trimming down the Foundry workforce by 30% this year. The company has reportedly started a four-round voluntary retirement program.
In an unprecedented move, Samsung kicked off a four-round voluntary retirement program, reports DigiTimes. This move aims to reduce the workforce at Samsung Foundry by 30% by the end of the year.
“Samsung Electronics has launched an unprecedented four-round voluntary retirement program, aiming to cut more than 30% of its foundry workforce.” – DigiTimes.
Recently, Jay Y. Lee completed two years as Samsung Electronics Chairman. The official just returned from its overseas trip to solidify business growth. Samsung Foundry is currently in a massive crisis, requiring immediate action.
It is reported that Samsung Foundry may flag significant losses this year. The company failed to attract major clients for contract manufacturing. At the same time, its advanced process nodes end up falling short of the production threshold.
Samsung’s memory semiconductor business, known as a cash cow, is also facing intense competition. The MX Division is doing a good job, but other divisions must have to stand rock solid to maintain a harmonious growth momentum.
News
Samsung Foundry may split from Samsung – Advantages and Challenges
Samsung Foundry may become a separate firm in 3 to 5 years. The company has established a task force within the business that is responsible to sequentially split the Samsung Foundry division from Samsung Electronics.
Korea’s TopDaily reports that Samsung Foundry may split from Samsung Electronics. The task force has three to five years to complete a smooth spin-off. With this strategic move, the company aims to attract major clients.
Samsung Foundry Spin-off
Samsung launched the Foundry division as an independent business in 2017. Since then, the company has been focussing on ambitious investments to foster business growth. However, the division is set to post significant losses this year.
The market has long demanded that Samsung spin off its Foundry business. Industry insiders believe that splitting the foundry business would be beneficial for attracting clients, as greater independence would help secure customer contracts.
Should Samsung spin off the Foundry division?
Separating Foundry from Electronics would be quite challenging for Samsung. The company will be requiring massive funding to spin off the Foundry business. The funding from other firms will significantly affect their performance and growth rate.
Reports say tens of trillions of KRW (billions of dollars) investment will be needed for Samsung Foundry. That said, it will be more advantageous for the foundry to remain under Samsung’s umbrella and secure growth.
How separation will benefit?
After TSMC, Samsung Foundry is the second-largest semiconductor foundry in the world. The company is involved in both memory and system semiconductors. Additionally, it also operates in Foundry and Fabless businesses.
Meanwhile, these advantages are somehow backfiring Samsung Foundry. It is speculated that foundry clients may find it burdensome to entrust semiconductor designs—considered their trade secrets—to Samsung Elec and System LSI.
System LSI division runs a fabless business focused on 5G and AI chips, which competes to some extent with fabless companies like Qualcomm, NVIDIA, and Apple, which could be retained by Samsung Foundry after separation.