Samsung Electronics must embrace a “do-or-die” mindset to navigate the growing challenges in artificial intelligence (AI), according to a report by Yonhap. As the global AI race accelerates, Samsung is facing mounting pressure to keep pace with competitors like Nvidia and SK hynix, particularly in the high-bandwidth memory (HBM) chip sector.
Despite being the world’s largest memory-chip manufacturer, Samsung has struggled to meet Nvidia’s AI processing demands, with SK Hynix emerging as a key supplier. In October, the company openly acknowledged a “crisis” in its technological competitiveness and long-term future.
During an executive training session, Samsung Chairman Lee Jae-yong emphasized the urgency of the situation, stating that the real challenge lies not in the crisis itself, but in how the company responds.
Samsung is facing a do-or-die survival issue. We must reflect deeply and act decisively,
Lee reportedly said, as per company sources cited by Yonhap.
Lee further stressed the importance of prioritizing long-term investments over short-term profitability to ensure Samsung’s continued leadership in the AI-driven semiconductor industry.
While a Samsung spokesperson declined to confirm the direct attribution of Lee’s statement, the company’s recent financial results highlight the pressing nature of these concerns. Samsung’s operating profit dropped nearly one-third in the fourth quarter of 2024, largely due to increased research and development expenditures.
Adding to the high-stakes situation, Lee was recently cleared of legal charges linked to a controversial 2015 merger that reinforced his control over Samsung. Addressing concerns about the company’s trajectory, he previously stated,
The challenges ahead are greater than ever, but we are committed to overcoming them and moving forward.
With AI rapidly reshaping the technology landscape, Samsung’s ability to adapt and innovate will determine its standing in the industry. As competitors gain ground, the company’s strategic response in the coming months will be critical in defining its future in the AI era.
