Samsung Electronics is poised for a challenging annual general meeting, with shareholders expressing dissatisfaction over its inability to capitalize on the booming artificial intelligence sector, which led to a sharp decline in its stock performance last year.
The meeting, scheduled to begin at 9 a.m. (0000 GMT), will have key executives in attendance, including Co-CEO Han Jong-hee and Jun Young-hyun, head of the chip division. Samsung’s internal discussions have highlighted an acknowledgment of losing technological ground, a fact made stark in the competitive semiconductor market.
Particularly, Samsung is behind in high bandwidth memory (HBM) chips, crucial for AI graphic processing units, where competitors like SK Hynix have excelled. Chairman Jay Y. Lee, during an internal executive seminar, noted, “Our technological edge has been compromised across all our businesses.”
Samsung’s stock plummeted nearly 33% last year, whereas SK Hynix saw a 26% increase. This decline comes amid reports of Samsung losing market share to Taiwan’s TSMC in chip manufacturing and to Apple and other Chinese brands in smartphones.
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In January, Samsung warned of weak AI chip sales, blaming U.S. export restrictions to China, its largest market. The firm also confronts risks from possible increased U.S. tariffs on Chinese imports, unlike its competitors.
To counteract the stock decline, Samsung initiated a share buyback plan valued at 10 trillion won ($7.2 billion) last November, leading to a 7% recovery in its share price. Despite these challenges, Samsung remains South Korea’s most valuable company, holding a market capitalization of $235 billion and a significant presence in the stock market.
Samsung’s upcoming meeting is critical in addressing investor concerns and devising strategies to regain its competitive edge in the tech industry. The ability to revitalize its technological advancements and manage external challenges like tariffs will be closely monitored by shareholders.
