“The leader disappeared when the semiconductor supercycle came” Foreign media worried about Samsung

Input 2021.01.19 11:00

Since Corona 19, the global semiconductor supply shortage has led to an emergency in the electronics, IT industry
Demand for all chips such as CPU, GPU, AP, etc., as well as automotive semiconductors, surge
One memorandum is expected to arrive again this year’semiconductor supercycle’
TSMC and Kioxia made large-scale investments, but Samsung is struggling with the absence of a leader

After the novel coronavirus infection (Corona 19), the prospect that the global IT and electronics industry will face a full-scale transformation this year is dominant. The leadership gap has come. Foreign media also analyzed that the absence of Vice Chairman Lee would inevitably affect Samsung Electronics in a critical period.

In particular, Samsung Electronics, which is the world’s No. 1 memory semiconductor company and is making aggressive investments in various fields such as foundries, communication chips, and artificial intelligence (AI), is expected to benefit from the’super cycle (great boom)’ expected this year. Was expected. In particular, as demand for chips surged starting from automotive semiconductors, market research firms in each country predicted that the performance of large semiconductor companies including Samsung would rise vertically this year.

On the 18th (local time), major media such as Bloomberg and the Wall Street Journal (WSJ) urgently addressed the arrest of vice chairman Lee Jae-yong.In particular, this case is due to Corona 19, mobile, 5G (5th generation mobile communication), electric vehicles, data It highlighted the fact that this was achieved during a period when the demand for center infrastructure was increasing rapidly. There is a negative prospect that this lack of leadership will hold back in the competition for leadership in the high-tech industry, which has entered a period of transformation by investing billions of dollars.

Bloomberg Telecom said, “Samsung Electronics was investing billions of dollars, which will play a pivotal role in future business. In particular, in order to close the gap with TSMC, the world’s No. 1 semiconductor consignment production (foundry), Samsung was invested in the foundry business with 117 billion dollars. We were looking forward to responding to the soaring demand for semiconductors as we poured the dollar.”

In addition, Samsung Electronics is investing heavily in the 5th generation wireless equipment field. In particular, Bloomberg emphasized that as Huawei, the world’s No. 1 operator in the field, was banned from use in Europe, including the US, an opportunity for business operators in various countries including Samsung Electronics. It means that Samsung has missed the golden time to leap forward in the 5G field.

“Chairman Lee Jae-yong’s absence can delay or complicate greater investments or strategic long-term movements. After being released from prison, Chairman Lee plays an active role in the company by frequently participating in government-related and public events. I came,” he added.

The reason why Vice Chairman Lee Jae-yong’s prison sentence is painful is that semiconductor companies around the world are making large-scale investments due to a severe shortage of semiconductor supplies. Global automotive companies are shutting down their factories or reducing production due to a shortage of semiconductors, and mobile application processors (APs) and graphics processing units (GPUs) are also experiencing shortages.

Market research firm IDC predicts that demand for DRAM and 34% for NAND flash will increase by 19% compared to last year in the global semiconductor market this year. Naturally, while memory semiconductor prices such as basic DRAM and NAND flash are rising rapidly, server semiconductors are showing signs of rising again.

In fact, DRAMeXchange predicted on the 13th that the price of DRAM for servers this year will increase by up to 40% from last year. It is explained that the price of server DRAM, which has soared due to Corona 19, has stabilized once, but will rise again this year.

Accordingly, competitors of Samsung Electronics are preparing for the’supercycle’ by making large-scale investments. Taiwan TSMC, a huge mountain that Samsung should overcome in the foundry market, is preparing to become the largest beneficiary of the global semiconductor supply shortage by predicting an investment of 28 billion dollars (KRW 30 trillion) this year. Samsung is also making investments by establishing an extreme ultraviolet (EUV) exposure equipment line in Hwaseong Fortress, but in order to make an investment worth tens of trillions of won, a decision in leadership is required.

In the memory sector, where Korea is leading the global market, Japanese companies have begun to pursue. Japanese semiconductor company Kioxia (formerly Toshiba Memory) has decided to build a new NAND flash memory factory in Yokkaichi City, Mie Prefecture, Japan with 1 trillion yen (about 11 trillion won). Analysis says that SK Hynix recently acquired the Intel NAND division for 10 trillion won, and Kioxia, who is in crisis of reversing its global share, is looking for a way through aggressive investment.

Regarding this, Japan’s Nihon Keizai Shimbun said, “Vice-Chairman Lee was scheduled to take office as Chairman Lee Kun-hee after the death of Chairman Lee Kun-hee in October 2020 and become the head of management in name and reality.” “He reported. The BBC also predicted that “this sentence will lead to a leadership gap and may impede Samsung’s decision to make large-scale investments in the future,” and predicted that the ruling would also affect the role of Vice Chairman Lee in Samsung Electronics.