Bold Investment Resolves Uncertainty... Lee Jae-yong's 'New Samsung Gamble' Pays Off

Driving Record High Sales with Expanded Semiconductor Investment Amid COVID-19
Major M&A Expected, Opening a New Era of '300 Trillion Won Annual Sales' This Year

Samsung Electronics Vice Chairman Lee Jae-yong is returning to Korea through the Seoul Gimpo Business Aviation Center at Gimpo Airport in Gangseo-gu, Seoul, on November 24 last year. Vice Chairman Lee, who departed on the 14th, is reported to have held various discussions with key executives of major local companies during his visit to the United States, his first in five years. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lee Hye-young] Samsung Electronics Vice Chairman Lee Jae-yong's 'New Samsung' gamble has paid off. The background behind Samsung Electronics' record-breaking sales and operating profit last year is analyzed to be the foundation laid by Vice Chairman Lee's bold semiconductor investment decisions and the resolution of uncertainties caused by the absence of the group head. Samsung Electronics is challenging the milestone of surpassing KRW 300 trillion in sales for the first time this year through the cultivation of new industries and large-scale mergers and acquisitions (M&A) declared by Vice Chairman Lee.

Samsung Electronics' preliminary annual and fourth-quarter results announced on the 7th reflect the agile response of the global number one company Samsung, which turned 'variables' into 'opportunities.' (Related article▶ Samsung Electronics sets record-high sales... Demonstrates semiconductor power overcoming 'winter' concerns)

Vice Chairman Lee has repeatedly emphasized investment in the system semiconductor and foundry (contract manufacturing) sectors, which are future growth engines, even amid the global COVID-19 crisis. Presenting a concrete goal of becoming the world’s number one in the system semiconductor sector by 2030, Vice Chairman Lee has visited semiconductor sites from time to time, delivering messages such as "We must not stop investing in the future especially in difficult times," "Do not be discouraged by uncertainty and keep challenging," and "We must seize the post-COVID future," continuing a hectic schedule both domestically and internationally.

The comprehensive support to strengthen semiconductor business capabilities became a catalyst for expanding Samsung’s footprint in the non-memory semiconductor sector while maintaining the global number one market share in memory semiconductors (DRAM and NAND flash).

In August last year, Samsung announced a KRW 240 trillion investment plan over the next three years in strategic businesses such as semiconductors and bio, once again demonstrating Vice Chairman Lee’s determination for a ‘super-gap.’ Following the announcement of large-scale investment and employment plans, Vice Chairman Lee immediately traveled abroad to lay the groundwork for realizing bold investments for the future.

Vice Chairman Lee visited North America and Middle Eastern countries consecutively to directly assess overseas companies and markets. He also met with executives from Google, Moderna, Verizon, and Microsoft to discuss collaboration related to future industries. Notably, Samsung confirmed the establishment of a KRW 20 trillion foundry plant in Taylor, Texas, U.S., officially preparing to become the world’s number one semiconductor supply base. Samsung aims to produce advanced system semiconductors for 5G, HPC (High Performance Computing), and artificial intelligence (AI) here, advancing as the overwhelming global number one semiconductor company.

Major M&As, which had lost momentum due to Vice Chairman Lee’s absence, are expected to gain traction starting this year. Han Jong-hee, Samsung Electronics Vice Chairman and head of the DX division, announced at the world’s largest electronics and IT exhibition ‘CES 2022’ that "We are pursuing M&A in all business areas" and "Good news will come soon."

Since acquiring automotive electronics company Harman in 2016, Samsung has had no significant M&A achievements, but it is known to be exploring meaningful M&As centered on next-generation industries identified by Vice Chairman Lee. Additionally, Samsung’s opening of active collaboration possibilities with domestic companies such as LG Electronics and Hyundai Motor Company is interpreted as strongly reflecting Vice Chairman Lee’s intention for ‘alliances for growth.’

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