Samsung needs ‘do-or-die’ mindset to survive AI challenges: Yonhap

Samsung Electronics must adopt a “do-or-die” mindset to tackle the challenges posed by artificial intelligence, which is reshaping the industry, chairman Lee Jae-yong told executives, according to Yonhap News. The South Korean tech giant has been struggling to meet Nvidia’s requirements, as rival SK hynix has become the preferred supplier of high-bandwidth memory (HBM) chips for Nvidia’s AI graphics processing units (GPUs).

The world’s largest memory-chip maker already acknowledged in October that it was facing a “crisis” and admitted that concerns had arisen over its “fundamental technological competitiveness and the future of the company.”

Lee, speaking during an executive training session, emphasized that “Samsung is facing a do-or-die survival issue” and urged top leaders to reflect deeply. His message, as reported by Yonhap, highlighted that “what matters is not the crisis itself, but the attitude in dealing with it.”

He also stressed the need for long-term investments, saying, “Even if it means sacrificing short-term profits, we must invest for the future.” However, a Samsung spokesperson told AFP on Monday that Lee had not “said the message himself” but did not provide further details.

Samsung’s financial struggles have been evident, with its operating profit dropping nearly a third in the fourth quarter last year due to increased research and development spending.

Lee was cleared last month of multiple charges related to a controversial 2015 merger, which prosecutors alleged was designed to consolidate his control over the company. During his last hearing, he acknowledged growing concerns about Samsung’s future, stating, “The reality we face is tougher than ever, but we are determined to overcome these challenges and take a step forward.”