Just a few months ago, Samsung Electronics seemed set to soar amid the global AI boom, with profits rising and shares edging close to all-time highs. However, South Korea’s largest company now finds itself struggling to keep pace, losing ground to competitors like SK Hynix in AI memory and falling behind Taiwan Semiconductor Manufacturing Co. (TSMC) in outsourced chip production.
Since peaking on July 9, Samsung shares have plummeted 32%, erasing $122 billion in market value—the steepest loss among chipmakers worldwide. The company’s challenges have led international investors, including Pictet Asset Management and Janus Henderson Investors, to reduce or abandon their Samsung holdings, with net sales of over $10 billion since July.
Though Samsung has announced restructuring efforts to regain its edge, some industry experts and investors remain skeptical. “We have halved our position in Samsung,” said Janus Henderson’s Sat Duhra, who remains unconvinced about a quick turnaround.
Once the dominant force in semiconductors, Samsung now grapples with delayed high-bandwidth memory (HBM) production—a setback after competitor SK Hynix began volume production. The crisis in its semiconductor business prompted Samsung to issue a rare apology to shareholders, acknowledging unmet expectations.
Adding to Samsung’s challenges is its costly, ongoing struggle to match TSMC’s foundry capabilities. As job cuts loom, an upcoming management reshuffle led by Chairman Jay Y. Lee may signal further changes.
“We don’t see much changing at Samsung,” said NH-Amundi Asset Management’s Park Jinho, who recently shifted focus to SK Hynix. As Samsung’s stock approaches record-low valuations, its leadership faces the daunting task of restoring confidence in the brand.