Lee Jae-Yong, chairman of Samsung Electronics, is accelerating the expansion of future businesses by leveraging the recovery of semiconductor competitiveness. Following a leadership change in the semiconductor division amid struggles in the high-bandwidth memory (HBM) sector, the company has achieved success in mass production of next-generation products and securing foundry contracts. The investment capacity gained from the semiconductor boom will be directed towards nurturing new ventures in robotics, automotive, and HVAC sectors.
According to industry sources, Lee will mark his fourth anniversary as chairman on the 27th. It is reported that no official events or public messages are planned for the occasion. Since taking office, he has faced challenges, ceding market leadership in the HBM sector to SK Hynix. However, with the recovery of competitiveness in next-generation products and a boom in AI memory, the semiconductor business is rebounding, allowing for investments in future ventures.
The starting point for rebuilding the semiconductor business was the leadership change implemented in 2024. Samsung Electronics, falling behind SK Hynix in the HBM3E competition, reinstated Vice Chairman Jeon Young-Hyun as head of the Device Solutions (DS) division. Jeon has focused on recovering technological competitiveness by overseeing the development of 10-nanometer 6th generation (1c·D1c) DRAM, which is a core foundation for HBM4.
As a result, Samsung completed the development of D1c in June last year and received approval for mass production transfer (PRA). In July, the company began ordering equipment to establish production lines. D1c serves as a key DRAM for HBM4, laying the technological groundwork for mass production of next-generation products. In February of this year, Samsung became the first in the world to commence mass production and shipment of HBM4. The strategy of focusing on leadership changes and core technology development has been credited with restoring product competitiveness.
In the foundry business, Samsung is also accelerating the acquisition of clients. The company has signed a large-scale semiconductor foundry contract with Tesla and is expanding cooperation with Broadcom in memory and foundry sectors. Notably, Samsung is applying base dies produced using its own 4-nanometer foundry process for HBM4, highlighting its strengths as a comprehensive semiconductor company with capabilities in memory, system LSI, and foundry. The strategy aims to expand the supply of integrated solutions that link advanced processes and packaging in the AI semiconductor market.
Lee's global network is also supporting business expansion. Since taking office, he has met with prominent CEOs, including Jensen Huang of NVIDIA, Elon Musk of Tesla, Sam Altman of OpenAI, and Lisa Su of AMD, to discuss collaboration on AI semiconductors and future technologies. The focus is on broadening cooperation with global tech giants from memory supply to foundry and AI infrastructure.
The investment capacity secured from the semiconductor boom is expected to be directed towards nurturing new ventures. Last year, Samsung acquired the German HVAC company Flakt Group, the audio division of U.S.-based Masimo, and the digital healthcare firm Xealth. The company is also pursuing the acquisition of ZF's advanced driver-assistance systems (ADAS) business through its subsidiary Harman. These investments aim to expand into areas such as AI data center cooling, automotive, and healthcare.
In the robotics sector, Samsung has integrated Rainbow Robotics as a subsidiary and established the RX Business Promotion Office under the Device Experience (DX) division in July. In the biotech sector, which Lee has identified as the 'second semiconductor,' Samsung is focusing on expanding its global market presence through Samsung Biologics' contract development and manufacturing (CDMO) and Samsung Bioepis' biosimilar business.
In line with the expansion of future businesses, the group's management structure has also been restructured. Last year, Samsung reorganized its business support task force (TF) into a formal business support office and appointed President Park Hak-Kyu as its head. With Vice Chairman Jung Hyun-Ho stepping back from frontline management after coordinating major management issues for an extended period, a generational shift in management has taken place. Notably, a dedicated organization for mergers and acquisitions (M&A) has been established under the business support office to enhance investment strategy coordination among affiliates and support the discovery of new ventures.
The upcoming regular executive appointments expected in November will focus on the restructuring of management in the semiconductor business and strengthening future business organizations. There is speculation that the position of head of the memory division, currently held by Vice Chairman Jeon Young-Hyun, may be separated to concentrate on improving profitability in non-memory sectors such as foundry and system LSI. Given the establishment of the business support office and the major management changes last year, this year is anticipated to emphasize maintaining stability in the existing management system while enhancing the execution capabilities of new ventures in AI and robotics through talent selection and organizational restructuring.
* This article has been translated by AI.
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