Samsung Electronics Vice Chairman Jeon Yong hyun stated that the company's fifth generation high bandwidth memory 3e (HBM3e) chip will play a "leading role" in the global artificial intelligence (AI) process market in the second quarter of this year.

At the company's annual shareholder meeting held on Wednesday, Quan Yongxuan, who also serves as the head of the Device Solutions (DS) department at the chip manufacturer, admitted that shareholder criticism of Samsung's slow response to the AI specific memory chip market is one of the reasons for the company's long-term low stock price.

He guarantees that Samsung will not repeat the same mistakes in the upcoming sixth generation HBM4 and customized HBM market competition.

Despite the ongoing uncertainty in the global semiconductor market, we are strengthening our internal response capabilities through product improvements and organizational restructuring, "he said.

Samsung Electronics was once a leading global memory chip manufacturer, but lost its leadership position due to the inability to supply HBM3e chips to Nvidia, which dominates the global AI accelerator market with its graphics processing units (GPUs) and other solutions. Therefore, domestic competitor SK Hynix has become a leading global HBM supplier thanks to its close supply relationship with Nvidia.

This has had a negative impact on Samsung's stock price and subjected the DS department to strict scrutiny.

A shareholder at the meeting criticized the long-term sluggish stock price, stating that this was mainly due to the company's failure to supply HBM3e chips to Nvidia.

We are currently working hard to improve product competitiveness by reflecting customer feedback, "Jun said. Therefore, our 12 layer HBM3e chip will be able to play a leading role in the market by the second quarter of this year or no later than the second half of this year

Jun added that the sixth generation HBM4 and customized HBM products are currently under development, with the goal of starting mass production in the second half of this year.

Although we missed the early market by failing to grasp the HBM trend, the HBM4 and customized HBM markets will not make the same mistake

Jun stated in a speech to shareholders that the company plans to double its HBM supply by 2024 and focus on high value-added NAND products such as high-capacity solid-state drives.

Shareholders also question Samsung's foundry and chip design businesses, stating that the company is now far behind TSMC, the world's largest foundry.

Han Jinwan, the president of the OEM business, said that the company "does not lack advanced technology" and "the primary goal for this year is to improve yield".

This shareholders' meeting is being held amidst growing concerns about Samsung's main business performance and long-term stock price downturn.

On July 11th last year, Samsung's stock price reached 88800 Korean won and has been on a downward trend ever since. On November 14th, it briefly fell to 49900 Korean won. Since then, the stock price has remained below 60000 Korean won.

This is largely interpreted as a signal that investors have lost confidence in Samsung's competitiveness in the chip and device business.

In the fourth quarter of last year, the operating profit of Samsung's Device Experience (DX) division, which includes smartphones, televisions, and other home appliances, decreased by 10% compared to three months ago. The operating profit of the DS department of chip manufacturer decreased by 25% during the same period.

At the meeting, Han Zhongxi, CEO and Vice Chairman of Samsung Electronics, promised to "do everything in his power" to increase shareholder value. Han Zhongxi is still the head of the DX department.

I sincerely apologize to the shareholders because the company's recent stock price did not meet expectations, "Han Zhongxi said. Last year, we failed to respond quickly to the rapid changes in the artificial intelligence semiconductor market, and our main products - such as smartphones, televisions, and home appliances - failed to establish a clear market leadership position

Han Zhongxi added that the company's stock price is in a bearish state due to concerns about technological competitiveness and the risks posed by the pressure of high tariffs imposed by the United States.

Regarding Samsung's plan for large-scale mergers and acquisitions (M&A), the company has always regarded it as a potential breakthrough to address the current economic slowdown. Han Zhongxi stated that Samsung has been "exploring M&A transactions in various ways" and will make every effort to achieve "tangible results" this year.

During the shareholders' meeting, the shareholders approved four agenda items proposed by the board of directors, including the appointment of Quan Yongzhe and Song Zaihe, Chief Technology Officer of DS Department, as new board members. The shareholders' meeting was held at the Suwon Convention Center in Gyeonggi Province, attracting over 900 shareholders

After the meeting, Samsung's board of directors appointed Quan Yongzhe as the co CEO of Samsung Electronics.

The company stated in a statement, "By appointing Jeong Yong Chol as co CEO, Samsung Electronics will have two CEOs to strengthen the responsibility of each business unit." "Through this move, Samsung aims to enhance the competitiveness of its core business and lay the foundation for sustainable development