The heads of Samsung Electronics' two major divisions have stressed the need to focus on restoring technological competitiveness and strengthening product quality rather than becoming complacent about strong earnings.
They called on the company to look beyond the current semiconductor boom and prioritize next-generation technologies and yield improvements. They also emphasized the need to improve product quality and cost competitiveness in finished goods businesses, including smartphones and home appliances, to establish a foundation for sustainable growth.
Jun Young-hyun, head of Samsung's Device Solutions (DS) Division and vice chairman, said in a message marking the company's 57th founding anniversary on Oct. 30, "No one can guarantee how long the market boom will last, while external challenges are becoming increasingly intense."
"Although AI is creating new growth opportunities for the semiconductor industry, uncertainty in the global economy and industrial environment remains high," Jun said. "We must closely monitor changes in supply and demand and the investment environment, and establish a system that enables us to respond swiftly and flexibly under any circumstances."
His remarks underscored the need to build a business structure capable of delivering stable results regardless of fluctuations in the semiconductor market.
Jun called for strengthening the company's fundamental competitiveness, with a focus on technology and quality. "Although our recent earnings have improved, it is difficult to say that our technological competitiveness has fully recovered," he said. "A technological edge cannot be achieved through declarations or slogans. It must be demonstrated through technological capabilities and quality recognized by customers that no competitor can match."
"We must not lose sight of the fundamentals of the semiconductor business, including securing next-generation technological competitiveness, improving manufacturing efficiency, ensuring flawless quality and raising yields," he said. "Furthermore, we must prepare technologies and products that anticipate changes in next-generation computing architectures and develop the technological capabilities to create new markets."
He also cautioned against becoming complacent during the boom. "The stronger the boom, the more humble we must be," Jun said. "A boom is temporary, and market conditions can change at any time. But customer trust is the foundation of sustainable competitiveness that we must preserve under all circumstances."
Roh Tae-moon, head of Samsung's Device eXperience (DX) Division and president, also stressed the importance of strengthening the company's fundamental competitiveness.
"Above all, we must strengthen the fundamental competitiveness of the device industry in areas such as product completeness, quality and operations to reinforce our market leadership," Roh said. "The greater the risks and uncertainties surrounding component prices and supply chains, the more we must enhance our capabilities in proactive supply chain monitoring and management to secure differentiated cost competitiveness."
Roh also reaffirmed the company's commitment to developing new growth engines.
"The DX Division has secured differentiated competitiveness by leading the industry with proactive technologies and products during the era of digital convergence and mobile innovation," he said. "We will establish a foundation for sustainable future growth in new businesses, including robotics, heating, ventilation and air conditioning (HVAC), medical technology and automotive electronics, by securing differentiated core technologies, building development and manufacturing infrastructure, and investing in innovative technologies."
In particular, Roh said the division would accelerate efforts to transform its business structure through AI transformation (AX) to drive future growth.
"We will reinvest the resources and capabilities secured through the achievements of AX innovation in high-value-added operations and new growth areas, creating a virtuous cycle in which AX innovation drives future growth," he said.
Meanwhile, Samsung Electronics will replace its founding anniversary ceremony with a commemorative message this year rather than holding a separate event. The company is reportedly planning to hold formal anniversary ceremonies only at 10-year milestones, such as its 60th and 70th anniversaries.
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