Occasionally in the world of business, the best defence is a good offence, and it seems like Samsung Electronics Vice Chairman Lee Jae-yong Desired to share this message with a Few of key figures in the South Korean tech giant to fend off Climbing challenges to its business.
Lee held a meeting together with five heads of Samsung’s major branches over the weekend to talk about its business plan amid a weak memory chip market and intensifying trade conflict between the US and China, Yonhap news agency reported on Monday.
The de facto leader of the world’s biggest memory chip and handset manufacturer vowed to spur innovation in key technologies and foster new growth engines to keep a top position in the rapidly changing technology market.
“Samsung should focus on procuring fundamental technologies for long term companies in a fast changing environment.”
The meeting came as Samsung faces headwinds in the downcycle of their memory chip and exhibit businesses, coupled with the sluggish global smartphone market.
The semiconductor business, which accounts for over 70 percent of its total revenue, has been in a downward spiral, with decreasing prices of DRAM and NAND flash chips this season.
Lee reaffirmed that the business will maintain its previous plan to invest 133 trillion won ($112 billion) from the non-memory chip sector to develop into the world’s top industry player by 2030, calling it”the engine of the fourth industrial revolution.”
The infrequent announcement directly quoting the Samsung heir arrived in a time when the US ban on Chinese tech giant Huawei’s gear is complicating its business outlook in the closely interconnected international supply chain.
Samsung earns more than half of its money from the united states and China, leaving the South Korean technology company vulnerable to prolonged trade conflicts between the world’s two largest economies.
While some market watchers held a positive perspective on Samsung’s smartphone and community sales in the wake of Huawei’s struggle, the Korean company is taking a cautious position as its value series is interwoven with all the Chinese firm, a significant client for its memory chips.
The biggest challenge may be how uncertainty can strike their companies any moment, prompting Samsung officials to arm the company with the necessary tools to survive potential threats.
“The meeting was held to align the business plan in line with the changing global environment and make sure the Huge investment is made without delay,” stated Kim Ki-nam, the head of Samsung’s device solution division overseeing
The worldwide operation of its semiconductor business, without elaborating.
Meanwhile, the Samsung’s leadership is under pressure from the expanding prosecution investigation into Samsung BioLogics Co., a bio health care unit accused of accounting fraud.
Civic groups maintained that the alleged accounting fiasco in BioLogics was ultimately intended to boost the Samsung heir’s management of the sprawling team by inflating Cheil Industries Inc.’s stake in Samsung BioLogics ahead of its merger with Samsung C&T Corp. at 2015.