Occasionally in the world of business, the best defence is a good offence, and it Sounds like Samsung Electronics Vice Chairman Lee Jae-yong Desired to share this message with a Few of Important 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 strategy amid a feeble memory chip market and intensifying trade battle between the united states and China, Yonhap news agency reported Monday.
The de facto leader of the world’s largest memory chip and handset maker vowed to spur innovation in key technologies and foster new development engines to maintain a top position in the fast changing technology market.
“Samsung should focus on securing fundamental technologies for long term companies in a fast changing environment.”
The meeting came as Samsung faces headwinds from the downcycle of their memory chip and display businesses, coupled with the slow global smartphone market.
Its display branch logged an operating loss in the first quarter, turning to the red for the first time since the first quarter of 2016.
Lee reaffirmed that the company will maintain its previous plan to invest 133 trillion won ($112 billion) in the non-memory chip sector to become the world’s leading business player by 2030, calling it”the engine of their fourth industrial revolution”
The rare announcement directly quoting the Samsung heir arrived in a period when the US ban on Chinese tech giant Huawei’s gear is complicating its business outlook in the closely interconnected global supply chain.
Samsung earns over half of its money from the US and China, leaving the South Korean tech company vulnerable to prolonged trade conflicts between the world’s two biggest economies.
Though some market watchers held a positive view on Samsung’s smartphone and network sales in the wake of Huawei’s battle, the Korean company has been taking a cautious position as its value series is interwoven with all the Chinese company, a significant client for its chips.
The biggest challenge might be how uncertainty can hit their businesses any time, prompting Samsung officials to arm the company with the necessary tools to endure potential threats.
“The assembly was held to align the Company plan in line with the changing global environment and Be Sure the massive investment was made with no delay,” stated Kim Ki-nam, the head of Samsung’s device solution division overseeing
The global performance of its semiconductor business, without elaborating.
Meanwhile, the Samsung’s leadership is under pressure from the expanding prosecution research to Samsung BioLogics Co., a bio health care unit accused of accounting fraud.
Civic groups maintained the alleged accounting fiasco at BioLogics was ultimately intended to enhance 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. in 2015.