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Samsung Apologizes for AI Missteps, Promises Strategic Overhaul

At its annual shareholder meeting, Samsung pledged mergers, acquisitions, and supply chain adjustments to address competitive struggles and shareholder concerns.

Han Jong-hee, co-chief executive officer of Samsung Electronics Co., speaks at the company's annual general meeting at the Suwon Convention Center in Suwon, South Korea, March 19, 2025.
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The logo of Samsung Electronics is seen at its booth during The 26th Semiconductor Exhibition 2024 in Seoul, South Korea, October 23, 2024. REUTERS/Kim Hong-Ji/File Photo

Overview

  • Samsung co-CEO Han Jong-hee publicly apologized to shareholders for the company's poor stock performance and failure to capitalize on the AI boom.
  • The company plans to pursue 'meaningful' mergers and acquisitions to regain growth and address its competitive challenges in semiconductors and smartphones.
  • Samsung acknowledged losing its technological edge, particularly in high-bandwidth memory chips, where it trails rivals like SK Hynix.
  • A $7.2 billion share buyback program was launched in late 2024 to address stock performance issues after shares fell nearly a third last year.
  • Geopolitical trade pressures, including U.S. export restrictions to China, continue to create significant obstacles for Samsung's recovery efforts.