In a bid to address the ongoing challenges in the semiconductor sector, Jun Young-hyun, vice chairman and head of Samsung Electronics’ Device Solutions (DS) division, convened his first executive discussion meeting with DS executives since taking office in May. The meeting, held on the afternoon of Nov. 1, focused on the issues and improvement directions of memory technologies, including high bandwidth memory (HBM).

Jeon, who took office in May, has been vocal about the internal issues plaguing Samsung’s semiconductor division. In an internal message issued in August, he pointed out “communication barriers between departments” and a “culture of hiding or avoiding problems and reporting unrealistic plans that only reflect hopeful outcomes” as reasons for the company’s weakened competitiveness. He emphasized the importance of fostering a culture of open discussion to overcome these challenges.

The urgency of these discussions was underscored by Samsung Electronics’ recent financial performance. In the third quarter of this year, the company recorded an operating profit of less than 4 trillion won in the semiconductor business. This disappointing result has been attributed to delays in HBM supply, a slow recovery in PC and mobile demand leading to inventory adjustments, and increased pressure on prices due to the expansion of Chinese generic DRAM volumes.

Following the announcement of these preliminary results, Jun issued an unusual apology, stating, “I am sorry for causing concern about the fundamental technological competitiveness and the future of the company due to the performance that did not meet market expectations.” This apology highlights the gravity of the situation and the need for immediate and effective action.

During the first discussion meeting with the Memory Business Division, Jun and the executives focused on the issues and improvement directions of memory technologies, including HBM. Jun emphasized, “Recovering the lead in the memory sector is the top priority.” This sentiment was echoed by Kim Jae-joon, vice president of Samsung Electronics’ Memory Business Division, who mentioned in a conference call after the third-quarter earnings announcement, “We are discussing customized HBM with our customers, and we plan to respond flexibly to customer demands by selecting foundry (semiconductor contract manufacturing) partners, regardless of internal or external relations.”

In a strategic move to enhance competitiveness in AI memory, Samsung Electronics is even considering partnering with its competitor TSMC. This potential collaboration underscores the company’s commitment to regaining its leadership position in the semiconductor market.

Jun plans to hold similar discussion meetings with other divisions, including the System LSI (semiconductor design) Business Division, the Foundry (contract manufacturing) Business Division, the Semiconductor Research Center (new technology), and the Staff Organization (business support). These meetings aim to address the broader issues affecting the company’s semiconductor business and to develop strategies for improvement.

“Although we are currently in a difficult situation, I firmly believe that we can quickly regain our competitiveness based on the unique communication and discussion culture of semiconductors, and our accumulated research experience and know-how,” Jun stated, expressing his confidence in the company’s ability to overcome its current challenges.