Samsung Electronics, a future that is still mortgaged despite promises to continue investment

As Samsung Electronics Vice Chairman Lee Jae-yong gave up re-appealing for the ruling on the ruling of the Gukjeong Nongdan remandation ruling, Samsung Electronics was faced with a circumvention of the total number of concerns.

Vice-Chairman Lee urged the management and executives and employees to work smoothly for the remaining one year and six months, excluding the one year previously incarcerated, while also asking the preemptive investment stance that had been established.

However, as the total number of blanks this year and next year, which is considered a golden time to prepare for future business in the global IT industry, is confirmed, the red light is still lit in the growth strategy through discovering new foods for the future and through large-scale mergers and acquisitions (M&A). .

According to related industry sources on the 27th, Samsung Electronics Vice Chairman Lee Jae-yong was imprisoned the day before, delivering his first message to executives and employees to soothe the uproar in the company, but it seems that there is still anxiety about the situation in the head gap.

Vice-Chairman Lee urged executives and employees to be faithful to the company’s duties, such as investment and employment, promised to the public, above all, through an attorney out of prison. The internal atmosphere was already full of uneasiness due to the arrest of the general manager, but the message that he had to devote himself to his work as usual, he thoroughly read the executives and employees.

Vice-Chairman Lee’s message is interpreted to dismiss concerns about Samsung’s management situation, which is erupting after his arrest was recently decided. Following the one-year imprisonment of Vice-Chairman Lee in 2017, the ruling expected another one-and-a-half month management gap, reducing worries about the future of Samsung in the domestic and global markets as well as inside Samsung.

In particular, attention was drawn to the possibility that Samsung’s large-scale investment planned in the system semiconductor field, which is competing fiercely in the global market, will be disrupted. Samsung, which has already established itself as the world’s strongest player in the memory semiconductor field, is concentrating its capabilities in the system semiconductor field, centered on foundries, starting last year, and it is planning to make essential basic investments this year and next year.

Vice Chairman Lee unveiled the so-called’System Semiconductor Vision 2030′ last year and unveiled a blueprint for another bold challenge in the global semiconductor market. The plan was to invest a huge amount of 133 trillion won over the next 10 years to catch up with the leader with a super-gap strategy in the system semiconductor market.

However, the first concern in the field of system semiconductors was the first concern as Vice Chairman Lee, who gave decisive strength in operating such a large-scale project, left the front line of management.

In addition, it is reported that TSMC, the number one global foundry that Samsung is currently pursuing, is planning to invest more than 30 trillion won this year alone, and the sense of crisis has come to a reality. TSMC also revealed that the right time to invest in facilities and research and development (R&D) has begun before the next-generation semiconductor market, such as automotive semiconductors, will greatly bloom.

As Vice Chairman Lee paid attention to among the prisoners, preemptive investment in the system semiconductor field could be a decisive variable that determines the future of Samsung. In addition, as Vice-Chairman Lee directs continuous investment, it is the industry’s opinion that there will be no major disruption to Samsung’s existing plans for the field.

In fact, it is known that Samsung is considering plans to expand its Austin, Texas plant, which is a local semiconductor production base, in conjunction with the launch of the US Biden administration. In the US, local media are predicting that Samsung will invest more than 10 billion dollars (approximately 11 trillion won) to expand its plant in Austin to secure foundry competitiveness. The plan has not been officially disclosed.

In the system semiconductor sector, which is the core of Samsung’s future investment, the possibility that the plan will be executed stably is weighed, but other than artificial intelligence (AI), 5G, robots, and autonomous driving, Samsung must preemptively invest and secure. In the future food sector, it is evaluated that it is difficult to put aside concerns.

Already, global leading IT companies are vigorously researching advanced technologies in the field and actively engaged in M&A to secure early technology companies. It is also pointed out that Samsung, which is in a situation where the total number is vacant in the battle for securing a future business where competition is fiercely fierce, has great difficulties in entering the market by pursuing large-scale M&A as before.

Samsung is in a situation where there have been no large-scale M&As that have taken place since, excluding Harman, a electronics company, which Vice Chairman Lee decided to take over before arrest in 2017. While Samsung was unable to appear in the global M&A market, global competitors such as Google and Amazon have already taken over a number of promising companies to create synergy. In Korea, LG also succeeded in acquiring the electronic equipment company’ZKW’ and began to conceive a concrete business plan for the future with a big deal in trillions.

A business official said, “It is highly likely that Vice Chairman Lee has made significant investment decisions in consideration of the long period of business gaps, but it is difficult to reflect the final investment opinions of the total number in the opportunity factors occurring in the fast-moving global IT market. “I am concerned that Samsung’s actions can affect the rest of the country as well,” he said.