Crisis Looms: Samsung’s Fate in Semiconductor Turmoil

● Samsung’s Semiconductor Crisis

Foundry Crisis and the Necessity of Samsung Electronics’ Internal Management Innovation

1. Foundry Market Crisis and Intensifying Chinese Competition

The risk of Samsung Electronics’ foundry market being pushed back by Chinese competition is increasing.
As external competition intensifies, internal management problems that lack adherence to fundamentals are surfacing.
With Chinese companies rapidly expanding their market share, maintaining our Samsung Electronics’ technological competitiveness is crucial.
The key is not to lose the basics in the foundry sector and to achieve technological innovation and strengthened management leadership.

2. Crisis Theory in DRAM and HBM Areas

A crisis theory is emerging regarding Samsung Electronics’ DRAM production and HBM development.
Internally, it is assessed that the failure to adhere to the principles of the engineering group has created cracks in the system.
In the past, they survived even in chicken game situations by producing various types of DRAM, but now, this lack of fundamentals is intensifying the crisis.
In the HBM field, disruptive innovation was required, but the response has been inadequate due to the inertia of the existing large corporation.

3. Engineering Group vs. Management Group, Loss of Innovation Engine

In the past, Samsung Electronics maintained its position as the world’s best based on the persistent research and effort of the engineering group.
In those days, the systematic research of engineers was linked to leadership, securing competitiveness.
However, as the management group gradually shifted to focus on finance and management, the opinions of engineers are being ignored.
As a result, the engine of internal innovation is weakening, and technological competitiveness is declining due to the failure to adhere to the basics.

4. Disruptive Innovation and Corporate Future Strategy

HBM innovation is a disruptive innovation that can dominate a niche market, much like Buldak Ramen.
Initially, large corporations were reluctant to enter due to cost burdens, but the market landscape changed as small companies and competitors actively stepped forward.
Samsung Electronics had weak incentives for innovation due to its large sales volume, resulting in missing out on disruptive innovation.
This innovation failure suggests the need to prepare fundamental measures to secure technological innovation and new growth engines in the future.

5. Government Policy and Response Direction for the Korean Economy

The government is proposing short-term countermeasures such as the creation of the K-Semiconductor Cluster and the easing of the 52-hour workweek.
However, fundamentally, Samsung Electronics’ internal innovation, that is, the restoration of fundamentals led by the engineering group, is necessary.
Government policies only play a role in buying time, and the actual solution comes from improving the internal management system and leadership of the company.
As it is a problem spanning the entire Korean economy, it is necessary to re-examine the fundamentals of the entire industry, not just Samsung Electronics.

6. Conclusion and Future Response Policies

Samsung Electronics’ crisis theory stems from the failure to adhere to the basics.
In core technology fields such as foundry, DRAM, and HBM, the recovery of internal leadership through technological innovation is crucial.
There must be a balanced division of roles between a competitive engineering group and management.
It cannot be resolved solely by the government’s short-term policies, and it is time to revive the company’s internal innovation DNA.
Ultimately, the future of our Korean economy starts with strengthening the fundamentals.

Samsung Electronics’ foundry market is facing a crisis due to intensifying Chinese competition.
Lack of fundamentals and loss of innovation engine are emerging as problems in the DRAM and HBM fields.
In the past, the systematic research of the engineering group was the key to success, but now, internal innovation is weakening due to the strengthening of the management group.
The government’s easing of the 52-hour workweek and cluster support are only short-term measures to buy time, and the fundamental solution lies in internal innovation within the company, that is, restoring the fundamentals.
Overcoming the crisis in the overall Korean economy begins with companies, including Samsung Electronics, reviving their innovation DNA and balancing technological innovation and management leadership.

*YouTube Source: [경제 읽어주는 남자(김광석TV)]

– K-반도체와 삼성전자의 운명은.. 파운드리·HBM 위기론 현실화? | 경읽남과 토론합시다 | 서영민 기자 3편

● **Semiconductor, Auto – Red Flags**

Multifaceted Analysis of Samsung Electronics’ Stock Price Increase Momentum – From Foundry to Tariffs

1. Recovery and Positive Realization of the Foundry Business

The first paragraph focuses on the recovery of Samsung Electronics’ foundry business.
Recently, positive signals have been detected as the foundry utilization rate gradually increases and the deficit scale decreases.
Expectations for orders from global customers such as Tesla and Qualcomm are still alive.
Such order news is likely to act as a short-term stock price increase trigger.
The growth potential of the foundry is noteworthy in the flow of the global economy and the semiconductor market.

2. Turnaround of the DRAM Business and Demand Uncertainty

While the performance of the DRAM business in the first quarter was better than market expectations, revenue rebound may be somewhat sluggish in the second quarter due to external variables such as tariff increases.
Due to the early bird effect in the first quarter and tariff reflection in the second quarter, there are concerns that DRAM sales and profits may fluctuate quarterly.
To ensure a clearer recovery momentum from the end of the second quarter to the second half, it is necessary to closely monitor the impact of tariffs and the timing of demand recovery.

3. CXMT and DDR5 Technology Issues and Competitiveness Evaluation

Regarding CXMT, technical limitations and product quality issues are emerging.
Although the yield is good in the DDR5 one-bit process, it is difficult to meet product quality standards, requiring additional redesign and production improvement processes.
At the same time, the price competitiveness problem of DDR4 is gradually weakening its advantage in the existing market.
New equipment introduction and development efforts to secure technological competitiveness are expected to be key.

4. Tariff Impact and Structural Changes in the Automotive Industry

Uncertainty in tariff policies raises concerns about negatively impacting both the semiconductor and automotive industries.
In particular, the strategy of expanding automobile manufacturing in the United States and tariff increases directly burden domestic finished car prices.
In the automotive industry, price increase pressure is increasing due to employment-inducing effects and rising component import costs.
This situation is likely to act as a representative variable of domestic and foreign investment sentiment and global economic uncertainty.

5. Exogenous Variables and Chain Reactions in External Markets

Concerns about a global economic recession and stock price fluctuations related to NVIDIA and Big Tech affect the stock prices of Samsung Electronics and SK Hynix.
In particular, Hynix is showing similar movements to NVIDIA, causing a discrepancy between short-term performance and momentum.
On the other hand, exogenous variables such as policy changes and tariff increases in the United States and major trading partners are comprehensively affecting semiconductors, automobiles, and the global economy as a whole.

6. Comprehensive Outlook and Investment Strategy Points

Samsung Electronics’ foundry business boom and positive order expectations are important factors in short-term stock price increase momentum.
On the other hand, uncertainty due to the timing of recovery in the DRAM market and external variables such as tariffs requires caution in investment.
CXMT and DDR5 technology issues remain a challenge for strengthening long-term technological competitiveness.
In the automotive sector, the market competition structure is expected to be reorganized due to global tariff policies and the expansion of production bases in the United States.
In conclusion, as indicated by key SEO keywords such as the global economy, Samsung Electronics, semiconductors, automobiles, and tariffs, it is necessary to strategically approach by closely monitoring both short-term triggers and long-term structural changes.

Samsung Electronics’ foundry recovery and positive order expectations are key factors in the stock price increase momentum.
Despite strong performance in the first quarter, the DRAM business is concerned about demand uncertainty in the second quarter due to tariff reflection.
The need for CXMT’s DDR5 production issues and efforts to secure technological competitiveness are emerging.
Uncertainty in tariff policies is expected to negatively impact the automotive and semiconductor markets.
It is time to review investment strategies based on the global economy and exogenous variables.

*YouTube Source: [와이스트릿 – 지식과 자산의 복리효과]

– “상황이 바뀌었습니다” 반도체 자동차 이게 가장 걱정입니다 / 격월 이건규 4월호 (2부)

● **DEATH SPIRAL LOOMING**

Analysis of the Latest Global Economic Outlook

Similarities Between the Great Depression of 1929 and the Current Economic Situation

The situation during the Great Depression of 1929, where a bubble burst after rapid technological innovation and overinvestment, is similar to the current overheating phenomenon due to the digital revolution.
In the past, the stock market surged due to mass production and technological advancements, but it plummeted due to excess inventory and deteriorating profits.
Currently, investments are concentrated in leading tech companies such as NVIDIA, Microsoft, and Google, causing their stock prices to rise significantly. However, there are concerns that increased competition in the AI sector may lead to a stock price decline.
This situation is a factor that creates anxiety across the entire economy, just like during the Great Depression.

U.S. Tariff Wars and Economic Strategy

The United States is adopting a strategy of imposing tariffs to address its trade deficit and national debt issues.
President Trump emphasizes imposing high tariffs on foreign products under the slogan ‘Make America Healthy Again,’ which has evolved from ‘Make America Great Again.’
By artificially raising the prices of imported goods through tariffs, the U.S. aims to reduce the trade deficit and create jobs and expand employment within the country.
However, there is a high possibility that U.S. consumers and importers will be significantly affected due to side effects such as retaliatory tariffs and price reduction competition.

Crisis and Response Strategies for the Korean Economy

The U.S. tariff wars have ripple effects not only on the United States but also worldwide, and Korea, with its high trade dependence, may suffer significant damage.
Although Korea has a relatively low tariff burden due to the KORUS FTA, it is already in a difficult situation due to non-tariff barriers such as value-added tax.
Major export items such as automobiles, steel, and semiconductors are at risk of weakening competitiveness in the U.S. due to increased tariffs.
The government and businesses are in a situation where they need to prepare crisis response measures in advance and strengthen systematic trade strategies and external negotiation capabilities.

Risks of Financial Markets and Government Debt

With U.S. government debt reaching 123% of GDP, interest burdens and fiscal deficits are putting pressure on the overall economy.
Attempts to replenish finances through tariff revenue also carry the risk of being effective only in the short term, and in the long term, economic recession and stagflation may worsen.
Coupled with financial market instability factors such as the Fed’s interest rate cuts and exchange rate adjustments, global economic uncertainty is increasing.

Summary

The similarities between the Great Depression of 1929 and the current investment overheating due to the digital revolution are evident.
The U.S. is entering a trade war through tariff imposition strategies, promoting economic reconstruction with the slogan ‘Make America Healthy Again.’
At the same time, U.S. government debt and fiscal deficits are acting as risk factors for the overall economy.
In particular, countries with high trade dependence, such as Korea, may face a major crisis due to the ripple effects of the Great Depression and trade wars.
The global economic outlook and response strategies have been systematically organized around key SEO keywords such as economy, trade war, tariffs, the United States, and the Great Depression.

*YouTube Source: [머니인사이드]

– “과거 대공황 직전과 똑같다” 앞으로 전 세계가 크게 흔들릴 겁니다 (이현훈 교수 2부)