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Samsung Electronics Chairman Lee Jae-yong visited the semiconductor research and development (R&D) bases at the Giheung and Hwaseong campuses on the 19th, one week before his official inauguration as chairman on the 27th, because he judged that the only solution to overcoming the deficit crisis in the DS (semiconductor) division was 'technology.' Not only has the market situation worsened, but the power struggle between the U.S. and China has led to semiconductor sanctions, increasing business uncertainties. Therefore, securing technology that overwhelms competitors was deemed the most reliable means of survival.

The semiconductor R&D complexes at the Giheung and Hwaseong campuses are the roots and future of Samsung Electronics' semiconductor business, which is the company's cash cow. Chairman Lee held a management meeting on-site and received reports on the development status of next-generation semiconductor technologies. Discussions were held on ways to enhance competitiveness across all fields, including memory semiconductors, where Samsung currently ranks first globally, as well as foundry (semiconductor contract manufacturing) and fabless (design) system semiconductors, where rivals such as Taiwan's TSMC are leading. In other words, this was a comprehensive review of Samsung Semiconductor's current status and future survival strategies.

Samsung began its semiconductor business at the Giheung campus in 1983. The Giheung campus is the birthplace of achievements such as the world's first 64M DRAM development in 1992, becoming the number one in the DRAM market, and achieving first place in the overall memory semiconductor market in 1993. Chairman Lee visited this site as his first official schedule after his release last year. His return visit ahead of his first anniversary as chairman is evidence of the significant importance of the semiconductor business to Samsung. Last year at the Giheung campus, Chairman Lee urged, "Let's continue the tradition of prioritizing technology and preemptive investment," and "Let's create the future with technology that does not exist in the world."

Samsung Electronics Chairman Lee Jae-yong visited the Samsung Electronics Cheonan Campus on February 17 to tour the package line and review business strategies.
[Photo by Samsung Electronics]

The semiconductor industry was fiercely competitive even before the U.S.-China power struggle. Samsung also once won a chicken game (a head-to-head confrontation to force the opponent to give up) against global memory semiconductor companies in the 2000s. Companies like Germany's Qimonda and Japan's Elpida went bankrupt. Now, an economic and security power struggle between major powers, which is difficult for companies alone to control, has begun. Major countries are competing fiercely to secure semiconductor competitiveness. Securing unique technology that other companies cannot imitate has become essential.

An industry insider said, "Chairman Lee's direct involvement in the semiconductor business at critical moments can be seen as an expression of his will to overcome economic crises through an unassailable technological gap and to help Korea secure a favorable position as a 'semiconductor powerhouse' in the global power competition."

Chairman Lee has consistently emphasized the importance of technology. In November 2019, he visited Samsung Research, Samsung Electronics' advanced R&D organization, and said, "We must create a new future with technology that has never existed before." In June 2020, he held a meeting at the Hwaseong Semiconductor Research Center and said, "Survival depends on how quickly we can make future technologies our own." At that time, former U.S. President Donald Trump began a trade dispute by imposing high tariffs on $200 billion (about 272 trillion won) worth of Chinese exports. This shows that Chairman Lee held a firm philosophy that 'technology is the only solution to overcoming crises' even then.

An industry insider said, "Although uncertainties surrounding semiconductors are increasing and unprecedented crises continue, Chairman Lee has repeatedly emphasized his management philosophy of breaking through head-on with 'technology.' The plan Samsung announced last March to invest 300 trillion won over the next 20 years to build an advanced system semiconductor industrial complex in Yongin was possible because of the owner's (Chairman Lee's) clear philosophy and bold decision."

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