"We have no interest in spinning off the foundry business. We are eager to grow this sector." This was the firm message from Lee Jae-Yong, Chairman of Samsung Electronics, during a trip to the Philippines in October 2024. He clearly expressed his determination to confront the challenges facing the foundry (contract semiconductor manufacturing) business, which had been rumored for a spin-off due to accumulated losses. Since his appointment, he has chosen to tackle challenges head-on rather than evade them, reinforcing his leadership through steadfast investments.
Lee's commitment to investment was evident from his first day in office. Instead of a formal inauguration ceremony in October 2022, he posted a message on the company bulletin board stating, "We must invest in technologies that do not yet exist, as our survival depends on future technologies." Even amid a crisis where the semiconductor division faced annual operating losses of 14 trillion won, he emphasized that "even in difficult situations, we must remain unwavering in nurturing talent and investing in future technologies."
During times of crisis, he did not shy away from delivering stern messages. At a seminar for executives from all subsidiaries held in March last year, the first in nine years, he remarked, "We have lost our Samsung spirit," urging a mindset of 'life-or-death' determination. At that time, over 2,000 executives received crystal plaques inscribed with the phrase, "Samsung people are resilient in crises, adept at turning the tide, and fierce in competition." Although this year's performance has rebounded, Lee cautioned, "Now is not the time to be complacent just because the numbers have improved; this is our last chance to regain competitiveness."
In this serious atmosphere, Lee's decisive actions paved the way for a counteroffensive. In May 2024, he made a bold move by replacing the head of the semiconductor division, stating, "We must invest in the future, even at the expense of immediate profits," and strongly encouraged investments in artificial intelligence (AI) semiconductors. In the first half of this year, the application of advanced processes to the sixth-generation high-bandwidth memory (HBM4) laid the groundwork for a comeback, culminating in the achievement of 100 trillion won in quarterly operating profit, a first for a domestic company.
Lee has also prioritized global networking management. He has frequently met with leaders of major tech companies, including Jensen Huang of NVIDIA, Mark Zuckerberg of Meta, and Sam Altman of OpenAI, as he travels between domestic and international locations. The practical collaborations forged through integrated semiconductor solutions have become a powerful AI alliance to navigate through crises.
Despite a downturn in the economy leading many major companies to reduce hiring, Lee has maintained a commitment to large-scale youth recruitment. At a youth employment forum, he expressed his intention to actively create jobs, stating, "As sales performance improves, we have the capacity to hire more." His management philosophy of 'talent first' is based on the belief that securing future talent is crucial for corporate competitiveness. Since last year, Samsung Electronics has initiated plans to hire 60,000 new employees over the next five years.
However, challenges remain, particularly regarding internal conflicts arising from disparities in performance bonuses during the recovery process. The management has promised corrective measures to address compensation imbalances between the Device Experience (DX) and Semiconductor (DS) divisions, but internal tensions are expected to persist for the time being.
Establishing a sustainable growth foundation through securing future-oriented hubs is also a pressing task. Samsung is tasked with successfully implementing mega projects focused on advanced industries in the southwestern region, creating large-scale production and research complexes to drive new growth.
Through the announcement of three major mega projects, Lee stated, "I am confident that we can create an irreplaceable South Korea," emphasizing, "We will strive to lead with a significant competitive edge in the global market."
* This article has been translated by AI.
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