Samsung Faces Crucial Challenges Ahead

Samsung Electronics is grappling with significant hurdles in its core businesses: chips, smartphones, and TVs. In a stark video address to 2,000 executives, the CEO highlighted an existential crisis and urged for investments in future technologies, despite the potential short-term profit losses.

The company is notably falling behind in the competitive AI market, facing intense pressure from rival SK Hynix. Analysts predict a staggering decline of over 20% in operating profit for the first quarter, following disappointing business numbers in the fourth quarter of 2024. Additionally, South Korea's semiconductor exports to China have plummeted by 31.8% due to stringent U.S. tech restrictions, raising alarms about the broader economic impact.

This confluence of setbacks poses serious questions about Samsung's future viability in an increasingly challenging market.