Samsung Division Heads Mark 57th Anniversary: Semiconductor Chief Warns Against Complacency, Device Chief Prioritizes Cost Competitiveness
Samsung's DS head urges humility despite record profits, citing incomplete tech recovery; DX head addresses margin pressure from AI-driven component costs by focusing on supply chain management and product innovation.
Heads of Samsung Electronics' semiconductor (DS) and consumer devices (DX) divisions issued distinct messages marking the company's 57th anniversary, highlighting the divergent impacts of the artificial intelligence boom on their respective businesses. Jeon Young-hyun, head of the DS division, warned against complacency despite historic performance, emphasizing that technological competitiveness has not yet fully recovered. No Tae-mun, head of the DX division, directly addressed the operational difficulties caused by rising component prices driven by AI demand, making cost competitiveness a primary objective.
Jeon noted that while AI market growth and expanding semiconductor demand have led to record-breaking results, "now is the time to calmly reflect on our reality and competitiveness and prepare for the future, rather than celebrating achievements." He admitted, "Although recent performance has improved, it is difficult to say that our technological competitiveness has sufficiently recovered." He stressed that "super-gap" leadership must be proven through customer-recognized technology and quality, not just slogans. Challenges cited include preparing for next-generation computing architectures, improving yields, and building a business system resilient to market fluctuations. With memory price surges strengthening supplier bargaining power, Jeon explicitly cautioned against leveraging this position to make unreasonable demands on customers, aiming to preserve long-term trust.
In contrast, No acknowledged the severe operating environment facing the DX division. He described the industrial shift triggered by AI as faster and more intense than the previous analog-to-digital transition, noting specifically that the surge in semiconductor demand has inflated prices, squeezing margins for end devices. To counter this, he called for enhanced proactive supply chain sensing and management capabilities to secure differentiated cost competitiveness. No identified product completeness and quality as fundamental strengths and pointed to new success stories in foldable phones, Micro RGB TVs, smart glasses, and AI companion devices. Additionally, he outlined plans to redesign business processes using AI to transform into an "AI-native company," reinvesting resources gained from efficiency into high-value-added tasks and new growth areas.