Samsung Electronics Co.’s head of its chip division, Jun Young-hyun, has issued a stark warning about the company’s future if it does not overhaul its workplace culture. In a candid memo to employees, Jun, who took over the role after SK Hynix Inc. gained significant ground in AI memory chips, emphasized the need for systemic changes to avoid a “vicious cycle” of issues.
Jun’s memo, reported by Bloomberg News, outlines frustration over Samsung’s recent struggles in the competitive field of memory chips for Nvidia Corp.’s AI accelerators. Despite Samsung’s announcement of its fastest net income growth since 2010 this week, Jun pointed out persistent problems that threaten the company’s long-term viability.
The memo calls for a restoration of a culture of rigorous debate and transparency, criticizing current practices that involve evading or concealing problems. “We need to rebuild the culture of fierce debate that is unique to semiconductors,” Jun stated. “Without addressing these fundamental issues, we risk repeating last year’s difficulties.”
Amid these challenges, Samsung is making strides in narrowing its gap with SK Hynix. Notably, the company has secured approval from Nvidia for its high-bandwidth memory chips, HBM3, and expects to receive approval for the next generation, HBM3E, in the coming months.
Historically, Samsung has been a leader in the semiconductor market, leveraging its scale and engineering prowess. Jun acknowledged the current difficulties but expressed confidence in the company’s ability to leverage its research and experience to regain its competitive
edge. “We are currently in a difficult situation,” Jun admitted. “However, with our accumulated research experience and know-how, we are confident that we will quickly regain our competitive advantage.”
