SEOUL: Samsung Electronics chairman Lee Jae-yong marks four years in the role this week with the company forecasting its biggest quarterly profit, a dramatic reversal from the semiconductor downturn that characterised the early months of his tenure.
Lee is now focused on strengthening Samsung’s technological lead and pursuing growth in robotics, automotive electronics and artificial intelligence (AI)-powered manufacturing as the memory business rebounds.No anniversary ceremony or special message was planned on Tuesday.
Lee instead visited Samsung’s research campus in southern Seoul to review its humanoid robot development, according to industry sources.
Samsung is introducing humanoid and other specialised robots into production lines as part of its plan to transition to AI-driven factories by 2030.
The visit followed his trip last week to the Al Dhafra gas-fired power plant construction site in the United Arab Emirates, where he met employees amid heightened regional tensions.
Both visits reflect the hands-on approach that has marked his tenure, with regular trips to production sites and research centres to review operations and hear directly from employees.
That tenure has spanned a sharp swing in Samsung’s fortunes.
The company has forecast third quarter operating profit of 107.4 trillion won, which would make it the first global technology company to surpass 100 trillion won in quarterly operating earnings.
Analysts expect the company’s full-year operating profit to reach about 372 trillion won, roughly nine times its 2022 level, the year Lee became chairman. Detailed quarterly results are due today.
Lee became chairman on Oct 27, 2022, as the semiconductor industry headed into a sharp downturn.
Samsung’s chip division lost more than 14 trillion won in 2023, while its struggles in high-bandwidth memory left it trailing smaller rival SK Hynix in a key market for AI processors.
Legal proceedings over the 2015 merger of Samsung affiliates and his family’s roughly 12 trillion won inheritance-tax bill added to the pressures. Those uncertainties have since receded.
The Supreme Court upheld his acquittal in July last year, and the family completed its tax payments in April.
Samsung’s response to the chip downturn included a leadership overhaul.
Veteran executive Jun Young-hyun took charge of the semiconductor division in May 2024 and later assumed direct oversight of the memory business, with a mandate to restore its competitiveness.
The company regained the global DRAM market lead in the fourth quarter of last year.
It began mass shipments of HBM4 in February and announced samples of 12-layer HBM4E in May, strengthening its position as AI infrastructure spending drives demand for advanced memory.
Elsewhere, Samsung’s contract chipmaking business has attracted orders from Google, Nvidia and Broadcom.
Its mobile division is seeking to build momentum with the passport-shaped Galaxy Z Fold8, while affiliates in biotechnology, electronic components and insurance have also reported improving earnings.
Lee has maintained close contact with major customers and partners throughout the recovery. Over the past year, he has met Nvidia’s Jensen Huang, Tesla’s Elon Musk, AMD’s Lisa Su and OpenAI’s Sam Altman.
His approach has included informal gatherings, notably a fried-chicken dinner with Huang and Hyundai Motor Group executive chair Euisun Chung in Seoul last October.
Within Samsung, Lee is pushing to make AI part of everyday operations.
He called for an overhaul of working practices and organisational culture in his New Year’s message, followed by AI training for company presidents and the adoption of external AI agents across affiliates. — The Korea Herald/ANN
