[Column] Samsung at a Crossroads, Is the Judicial Risk Finally Over?

[Asia Economy Reporter Changhwan Lee] Taiwan's TSMC, considered the biggest competitor to Samsung's semiconductor business, plans to invest at least 30 trillion won over the next 1 to 2 years to build semiconductor factories in the United States and Taiwan. Through this large-scale investment, TSMC aims to maintain its solid number one market share of over 50% in the global semiconductor foundry (contract manufacturing) market.

As TSMC thrives, even Japan, which was once a competitor of Samsung, is reaching out to TSMC. The Japanese government plans to provide government funding worth trillions of won over the next several years if TSMC builds a factory in Japan and cooperates with Japanese companies.

The aggressive semiconductor investments by Taiwan and Japan stand out for various reasons, but there is growing interpretation that these are strategies conscious of South Korea. In particular, it is analyzed that they have Samsung, their biggest competitor, in mind.

Last year, Samsung Electronics Vice Chairman Lee Jae-yong announced a blueprint to invest 133 trillion won by 2030 to achieve the world's number one position in system semiconductors, including foundries, which has accelerated competitors' movements.

The increasing speed of the Fourth Industrial Revolution, including artificial intelligence (AI), autonomous vehicles, 5G communication, the Internet of Things (IoT), and the activation of the contactless economy, has made the use of semiconductors more important, which has also fueled companies' semiconductor investments.

With the business environment rapidly changing, many semiconductor companies are seen to be at a crossroads in their current operations. There is a widespread sense of urgency that without proper direction and purpose and active investment, they could quickly fall behind in competition and enter a decline.

In this critical crisis, the role of the captain is even more important. Because they must look further into the future and decide on large-scale investments and business directions. This is why it is hard to imagine Samsung without Vice Chairman Lee Jae-yong.

The business community believes that if Samsung falters, the national economy will also be shaken. Samsung's share of the Korean economy exceeds 20%, and the number of people who depend on Samsung for their livelihood, including not only themselves but also their families and partner companies, is difficult to count.

This is also why many businesspeople hope that the prosecution will decide on the indictment of Vice Chairman Lee Jae-yong from a broader perspective. The prosecution is expected to soon decide whether to indict Vice Chairman Lee regarding allegations of illegal succession of management rights.

The court has already dismissed the arrest warrant for Vice Chairman Lee, and the Supreme Prosecutors' Office's Prosecutorial Investigation Committee has recommended stopping the investigation and not indicting. This points to the prosecution's investigation of Samsung being conducted rather excessively.

It is time to conclude the prolonged prosecution investigation of Samsung that has dragged on for the past four years. Moreover, the Investigation Committee was established by the prosecution itself as a reform measure.

This content was produced with the assistance of AI translation services.