Jeon Younghyun: "Returning to Our Roots to Restore Samsung's Fundamental Technological Strength"

56th Anniversary of Samsung Electronics
Proposal to Become an "AI-Driven Company"
"Samsung Electronics at a Critical Turning Point"

Jeon Younghyun, Vice Chairman and Head of the Device Solutions (DS) Division at Samsung Electronics, emphasized on October 31, "We must return to our original intentions and focus on the essence of technology and the perfection of quality to restore our fundamental competitiveness." In its third-quarter earnings announcement the previous day, Samsung Electronics officially confirmed the supply of fifth-generation high-bandwidth memory (HBM) 3E to Nvidia, which is being interpreted as a sign of confidence in the company's technological recovery.

Vice Chairman Jeon Younghyun delivering a commemorative speech at the 56th anniversary ceremony of Samsung Electronics held at Samsung Electronics Suwon Digital City on October 31. Samsung Electronics

At the 56th anniversary ceremony of Samsung Electronics held at Suwon Digital City, Vice Chairman Jeon stated, "Amid ongoing uncertainties both at home and abroad, Samsung Electronics stands at a critical inflection point." He continued, "Rather than being a company that follows change, we must become a company that leads innovation in artificial intelligence (AI)," presenting the vision of becoming an "AI-driven company" as the path forward for Samsung.

Vice Chairman Jeon's remarks about "restoring fundamental competitiveness" differ in tone from his comments at last year's anniversary ceremony. At that time, in a joint commemorative speech with Vice Chairman Han Jonghee, he strongly called for change, saying, "We must approach everything anew, from the way we work to discovering new growth engines."

This year marked a turning point as Samsung Electronics' semiconductor business made a comeback. In the third quarter, the semiconductor division accounted for more than half of the company's total operating profit of 1.21661 trillion won, generating 7 trillion won. Additionally, after two years, the company achieved the milestone of supplying 12-layer HBM3E to Nvidia.

Vice Chairman Jeon is credited with restoring Samsung's semiconductor technology and market position in the global market, as well as pioneering new avenues, just one year and five months after taking office as head of the division. After assuming his role in May 2024, his first actions were self-reflection and a clear diagnosis of the issues. In his inaugural address, Vice Chairman Jeon did not hide the crisis facing the company's semiconductor business. He pointed out, "In 2023, the semiconductor division recorded the largest loss since the company's founding, and the previously unchallenged No. 1 memory business is facing fierce competition. The foundry (semiconductor contract manufacturing) business has failed to close the gap with the leader, TSMC, and the system LSI business continues to struggle." Internally, he reportedly delivered the message, "Let's first do what we have been doing properly."

Subsequently, he sought to overhaul DRAM, which had been the driving force behind Samsung's rise to the top of the global semiconductor industry. Although HBM, which was lagging in market competition, was the most urgent issue, considering that HBM is a product built by stacking DRAM, he judged that reviving DRAM would ultimately secure competitiveness in HBM as well.

The Samsung DS Division completely reset its traditional DRAM design approach. DRAM was redesigned to meet the requirements of customers such as Nvidia. It is also reported that Vice Chairman Jeon personally took on the role of introducing new DRAM samples to the management at Nvidia headquarters in Santa Clara, California, whenever a new product was developed. According to industry sources, Vice Chairman Jeon visited Nvidia headquarters once in February this year with a DRAM sample developed using the fifth-generation 1b design at the 10-nanometer (1 nm = 1 billionth of a meter) level, and again in May with a DRAM sample developed using the sixth-generation 1c design at the 10-nanometer level.

The scene from Samsung Electronics' 56th anniversary ceremony held on October 31 at Samsung Electronics Suwon Digital City. Samsung Electronics

The foundry business is also on the rise, receiving AI chip production orders from global companies such as Tesla and Apple. While Vice Chairman Jeon is focusing on the memory business, including HBM, the leadership of the foundry division has effectively been entrusted to Han Jinman, President and Head of the Foundry Business. However, some analysts note that Vice Chairman Jeon's influence over the overall operation and strategic direction remains significant and cannot be overlooked.

At the ceremony, he made it clear that AI is the company's goal, urging, "Let us become a company respected for the best technology." Vice Chairman Jeon explained, "AI is already breaking down industry boundaries and reshaping the world," and added, "We will fully integrate Samsung Electronics' unique technological capabilities with AI." He further stated, "Let us actively utilize AI to transform customer needs and related ecosystems, and leap forward as an 'AI-driven company.'"

The anniversary ceremony was attended by about 400 executives and employees, and included the presentation of long-service and exemplary employee awards, a congratulatory performance, the commemorative speech, and a commemorative video viewing.

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