Samsung, investor confidence in the semiconductor division cracked

It appears that investors are losing faith in Samsung’s semiconductor business: As we have already discussed several times (even in recent times), the company’s market shares in the industry are miniscule when compared to leaders like Qualcomm, MediaTek and Apple, and Exynos chips never quite measure up to their Qualcomm counterparts. especially in the top range. According to groups such as Petra Capital Management, Dalton Investments and Samsung Investors, Samsung has lost the ability to innovate. This accusation was directed a little to the whole group, but above all to the semiconductor division.

According to investors the Gordian knot of the situation is Lee Jae-yong, which has been at the helm of the entire group since 2020: the executive is accused of having established an inflexible corporate culture and having prioritized rapid growth and saving money at the expense of innovation and high quality standards. Experts argue that creativity is a key element in chip design, and a system that is too rigid is likely to stifle the creativity of employees.

This (presumed, of course) inflexibility established at the highest levels of the group would be causing repercussions also in the other divisions. In general, society is less risk-prone, which is inevitable when it comes to innovating. And if you do not innovate, there is a risk that even a consolidated leadership such as that in the smartphone sector will vanish in a very short time – above all by calculating how fierce the competition is.

As often happens, these alterations in the working climate have a kind of Domino effect which sooner or later involves all levels. Rumors say the divisions blame each other for the ever-increasing difficulties in the semiconductor division. And some rumors say that Samsung is losing ground not only on Exynos, but also on product categories that it has dominated for years, for example that of DRAM memories.

Of course it is not that the company is already doomed, quite the contrary. As we know Samsung is trying to revive the fortunes of the Exynos division with a rather bold plan (we could also say risky), which foresees the absence of top-of-the-range chips in the next two years to return in 2025 stronger and more competitive than ever.