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Samsung Faces Shareholder Backlash Over AI Failures, Pledges Bold Recovery Moves

Leadership apologizes for technological setbacks and announces plans for mergers, acquisitions, and supply chain adjustments to regain competitiveness.

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 acknowledged losing its technological edge in semiconductors, particularly in high-bandwidth memory chips critical for AI applications.
  • The company’s stock dropped by nearly a third in 2024, underperforming competitors like SK Hynix, which gained market share.
  • At its annual shareholder meeting, co-CEO Han Jong-hee apologized for underperformance and pledged to pursue 'meaningful' mergers and acquisitions.
  • Samsung plans to adjust its supply chain strategy to address U.S. tariffs and export restrictions impacting its key Chinese market.
  • Shareholders criticized leadership for maintaining the status quo, urging bold innovation to reverse the company's declining competitiveness.