Samsung's CEO addresses slow growth with investors

The post Samsung's CEO addresses slow growth with investors appeared first on Android Headlines.

Mar 25, 2025 - 18:48

The entire tech industry is aware of the difficulties Samsung has been experiencing in some key divisions for several years. The company has been implementing strategies for some time to try to turn the situation around. Its latest Q1 2025 earnings report was not encouraging, but it promised to take action. Recently, Samsung’s CEO again addressed the company’s slow growth problem.

When a company decides to go public, it must heed investor questions if things aren’t going well. Investors typically look for the firm to grow alongside its stock price. That’s something that hasn’t been happening with Samsung. At times, the stock price has even fluctuated downwards.

Samsung’s CEO spoke to investors about the company’s growth problem

Samsung held its Annual General Meeting this week. Han Jong-hee—who later passed away—and Jun Young-hyun, the company’s CEO, had to deal with investor questions. The main complaints were related to the company’s slow growth and stagnant stock price amid the artificial intelligence wave.

“We were late in reading the market trends and missed out on the early market as a result,” said Jun Young-hyun in this regard.

Some of Samsung’s main current problems stem from its chip divisions. We’re not just talking about processors, like the Exynos, but also memory chips. For example, the Galaxy S25 series uses Micron’s RAM, as confirmed by both companies. Previous reports had revealed that Samsung’s memory chips had thermal management issues. The company’s HBM chips, key to AI hardware, have also lagged behind the competition. SK Hynix, another South Korean company, currently dominates this segment.

Samsung’s chip design and production problems have not only impacted its own products. The firm has also lost contracts from major clients who prefer to use rival factories and solutions.

US trade restrictions impacted Samsung’s finances; company will seek mergers or acquisitions

Additionally, US trade restrictions have apparently affected the company’s operations. Samsung had some Chinese companies as important clients. While the restrictions prohibited the sale of the latest AI chip technologies, they did allow the sale of “nerfed” versions. Samsung used to do this, but the tightening of the restrictions has closed this possibility.

“There are some difficulties in conducting semiconductor M&As due to regulatory issues and various national interests, but we’re determined to produce some tangible results this year,” said Han.

Samsung’s CEO also said that the firm will “actively pursue more meaningful mergers and acquisitions opportunities” as one of the measures to address the slow growth rate.

Samsung falls behind its rivals

Reuters had access to a message from Chairman Jay Y. Lee at an internal executive seminar. “Our technological edge has been compromised across all our businesses,” a transcript of the message reads. “It’s hard to see that efforts are being made to drive big innovation or tackle new challenges. There are only efforts to maintain a status quo rather than shaking things up,” added Jay Y. Lee.

The company will allocate more resources to more tech segments that will lead to greater growth in the medium and long term. Robotics and medical technology are two of these segments. Meanwhile, Samsung is also looking for potential new major clients, such as Xiaomi in the electric car segment. The company is also expected to launch an XR headset and smart glasses this year.

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