Samsung's Device Solution (DS) Division CEO, Kyung Kye-hyun, expressed the company's ambition to reclaim the top position in the semiconductor market within the next two to three years during the recent annual shareholder meeting. Despite facing tough questions at the meeting, particularly concerning Samsung's chip division, the company is dedicated to surpassing its competitors and addressing the challenges it currently faces in this sector.
In 2023, Samsung slipped to third place in global semiconductor revenue, losing its top position to Intel and trailing behind Nvidia. This shift highlights the escalating competition and difficulties within the semiconductor industry. The semiconductor market is known for its cyclical nature, and recent fluctuations have impacted major players like Samsung, SK Hynix, and Micron. Nvidia's rise, especially in segments like high bandwidth memory (HBM), has added to the competitive pressures facing Samsung.
Samsung's semiconductor division heavily relies on the memory market, with DRAM and NAND products as its mainstays. Despite recent challenges, the division anticipates an upturn in the memory market, driven by increased demand for data centers and consumer electronics. Introducing new technologies like HBM3E provides opportunities for Samsung to differentiate itself and gain a competitive edge over its rivals. However, challenges persist, including strategic moves by competitors like SK Hynix and Micron in the HBM space. In the foundry segment, Samsung faces stiff competition from industry leader TSMC. Although Samsung was the first to introduce a 3nm process node, it has encountered difficulties in attracting major customers, citing alleged yield rate issues. Intel's reentry into the foundry market poses another challenge for Samsung, as Intel aims to become the second-largest foundry by 2030, intensifying competition in the semiconductor landscape.
Despite the challenges, Samsung is optimistic about the prospects of its semiconductor division. The company is exploring opportunities in emerging sectors such as AI and automotive, leveraging its expertise in memory, logic, and foundry to drive growth. Samsung's strategic initiatives, including the development of AI accelerators and processor-in-memory (PIM) technologies, demonstrate its commitment to innovation and diversification.
