Jun Young-hyun, vice chairman and head of Samsung Electronics' (005930.KS) Device Solutions (DS) Division, has strongly urged semiconductor executives to adopt a "super supplier-as-servant" attitude and to restore the company's fundamental competitiveness. The message is seen as an effort to tighten internal discipline and maintain the company's chip leadership at a time when external and internal uncertainties have reached a peak, with the labor union announcing an unprecedented long-term strike.
According to industry sources on Wednesday, Jun told executives at a recent management briefing, "We must not be complacent with results, and we should view the current boom as the last golden time to restore our fundamental competitiveness." Although the DS Division posted operating profit exceeding 50 trillion won in the first quarter, setting a new record in Korean corporate history, Jun cautioned that the result stemmed largely from external factors such as the memory chip super cycle and that executives should not become arrogant.
Jun particularly emphasized to the Memory Business Division, "We must always serve customers' businesses with the attitude of a 'super supplier-as-servant.'" Amid the artificial intelligence (AI) boom, global Big Tech firms are racing to secure semiconductors such as high-bandwidth memory (HBM) in advance, but Jun strongly warned against showing arrogance based on the supplier's upper hand. "Our performance is the result of what our customers have given us," he said, repeatedly urging executives to build long-term trust with customers without compromising on quality even during the boom. He also called on the foundry and System LSI divisions to focus on the essence of their business.
Jun's remarks are drawing greater attention as they come alongside the Samsung Electronics union's announcement of a long-term strike. The union plans to launch an 18-day general strike from the 21st through the 7th of next month, demanding improvements to the performance bonus system, among other changes.
Apparently mindful of the situation, Jun said, "The company faces difficulties in many respects and is under the spotlight of the market, but management activities must continue," directing that "each business unit must perform equally well, at least in management activities." He expressed strong determination that production line operations and supply stability must be maintained without wavering, even amid labor-management risks.
If the strike materializes, the fallout is expected to be uncontrollable. Global investment bank JP Morgan recently warned in a report that the strike could cause an operating profit loss of up to 43 trillion won. The union, for its part, has estimated the production disruption damage at 20 trillion to 30 trillion won, pressuring management.
Above all, the risk of losing customers is the most painful issue for Samsung. Major Big Tech customers are reportedly monitoring the situation closely, checking with Samsung Electronics every week on chip production stability and potential supply disruptions.
"With competitors mounting fierce pursuits, if the strike drags on and disrupts supply, the company could lose the hard-won chip boom opportunity entirely," an industry official said. "Vice Chairman Jun's message ultimately reflects a sense of urgency to minimize the internal risk of labor-management conflict and to focus, without wavering, on the essence of the business — customer trust."
