Suwon: Han Jong-hee, the chief executive officer and vice chairman of Samsung Electronics Co., has issued an apology to shareholders following a significant decline in the company's stock prices. During a general shareholders meeting held in Suwon, south of Seoul, Han expressed regret over the disappointing performance and committed to efforts aimed at regaining market leadership.
According to Yonhap News Agency, Han acknowledged that Samsung Electronics has faced challenges in adapting to the fast-changing artificial intelligence (AI) semiconductor market. He admitted that the company fell short in securing dominant competitiveness in key sectors, such as smartphones, TVs, and home appliances, throughout last year. Concerns surrounding the company's technology capabilities and rising geopolitical uncertainties, including U.S. tariff policies, have contributed to the weak stock prices.
"Our executives and employees are well aware of the importance of meeting market expectations for earnings and technological competitiveness," Han stated. He emphasized the company's dedication to enhancing core technologies and achieving solid financial performance to restore investor confidence.
Throughout last year, Samsung Electronics' stock prices fell from around 80,000 won (US$55) at the beginning of 2024 to approximately 55,000 won by the end of the year. This decline was partly due to the company's underwhelming performance in the semiconductor sector, especially its failure to capitalize on the AI-driven boom in high bandwidth memory (HBM). Rival SK hynix Inc. has notably outpaced Samsung in this critical market segment, posting an operating profit of 8.08 trillion won in the fourth quarter of 2024, surpassing Samsung's 6.5 trillion won.
Samsung Electronics, which has a diverse business portfolio ranging from home appliances to mobile devices and semiconductors, highlighted its plans to supply the fifth-generation HBM3E product to the U.S. AI giant Nvidia Corp. later this year. Jun Young-hyun, head of the semiconductor division at Samsung Electronics, stated during the event that their 12-layer HBM3E would play a key role in the market as early as the second quarter or the third quarter at the latest.
Previously, Samsung Electronics' HBM3E chips failed to pass Nvidia's quality tests, excluding the company from the Nvidia-led AI chip supply chain. Jun reassured shareholders that the company is taking careful steps to ensure future HBM technologies meet the necessary standards and deadlines, pledging not to disappoint shareholders again.