Facing Pressure in the Global Chip Market, Samsung Strengthens Position with AI Chips and Focus on Premium Growth

Jakarta, INTI - A significant shift is occurring in the global semiconductor industry, driven by the growing demand for AI-based products across various sectors. Samsung Electronics, one of the world’s largest chipmakers, is working to strengthen its position amid a challenging market environment. With fierce competition from companies like TSMC and SK Hynix, Samsung is prioritizing the development of premium products that support AI applications, such as high-speed memory chips and cutting-edge technology.

Challenges and Strategic Focus in the Chip Division

For Samsung, the semiconductor division is a vital component of its long-term growth strategy. In its third-quarter financial report, this division experienced a decrease in operating profit to 3.9 trillion won (from 6.5 trillion won in the previous quarter), revealing significant pressures in the market. The company has faced rising costs and increased competition from rivals who have secured substantial profits from the AI chip demand surge.

Nonetheless, Samsung sees the AI technology transformation as a long-term opportunity. Its main focus is to strengthen its HBM technology and other high-quality products aligned with AI needs. This strategy is expected to give Samsung a competitive advantage in the high-end chip market, especially as global demand for AI solutions continues to grow.

Leveraging SmartThings and the AI Ecosystem

Samsung is not only focusing on the semiconductor sector but also developing an AI-based ecosystem through its SmartThings platform, which currently has approximately 360 million users. With this ecosystem, Samsung is planning AI-powered smart home technology, from device connectivity to energy-saving solutions. This move aligns with the smart home trend that is growing in various countries, including Indonesia.

AI Display Technology and SoC Development

Samsung Display Corporation (SDC) also plays a significant role in the company’s AI strategy, focusing on high-quality display products, especially for AI-enabled devices. Additionally, Samsung’s System LSI division is working to expand AI technology by providing SoCs specifically designed to support various AI applications in mobile and home electronic devices.

In the coming years, Samsung plans to develop AI-based technology across its product lines, including mobile devices, tablets, and wearables. The MX Business Division, which is responsible for flagship mobile products, prioritizes flagship products such as Galaxy with more advanced AI technology.

2025 Growth Targets and Geopolitical Challenges

Samsung has ambitious plans to enhance its competitiveness in the premium market. Geopolitical challenges and global supply chain disruptions add complexity to achieving these targets. Amid this situation, Samsung emphasizes the importance of technological innovation and product quality. According to Jun Young-hyun, Vice Chairman of Samsung Electronics, “Technology and quality are Samsung’s pride that cannot be compromised. We will restore fundamental technological competitiveness to maintain an edge in this industry.”

As one of the leaders in the technology industry, Samsung faces considerable challenges but remains optimistic about long-term growth driven by AI technology adoption. By focusing on premium products and developing more sophisticated AI chips, Samsung aims to dominate the rapidly expanding global AI market.