(CTN News) – In the midst of persistent uncertainties regarding the macroeconomic environment, Samsung Electronics completed its annual executive reshuffle on Friday. The company will begin a global strategy session next week to establish business strategies for next year.
During Samsung’s global strategy meeting, held biannually in June and December, executives from the company’s local and global units gather to review business conditions in each sector and to discuss new growth engine plans for the upcoming year.
Also, this will be the first meeting after Lee Jae-yong, the de facto leader of Samsung Group, took office as CEO of Samsung Electronics on October 27. The chief, however, will not attend the meeting as usual, according to Samsung representatives.
The tech giant’s Device Experience (DX) division, which oversees its smartphone and home appliance businesses, will organize the meetings on Thursday and Friday, while Device Solutions (DS), which manages the company’s chip business, will hold the meetings around Dec. 22.
Han Jong-hee, Samsung’s DX division’s head, and Kyung Kye-hyun, Samsung’s DS division’s head, will preside over the meetings of its two divisions under the leadership of their respective co-CEOs.
It used to take place in person every two years, but as a result of the prolonged Coronavirus pandemic, this year’s meeting will take place in a hybrid format.
A number of challenges are expected to be discussed at the event, including how Samsung plans to confront and manage global inflation, consumer pent-up demand, rapidly rising interest rates, geopolitical tensions, as well as the ongoing pandemic.
One of the major concerns on the DX front will likely be the sluggish demand for smartphones and home appliances, particularly in the coming years.
Further, the division will attempt to strengthen its grip on the global premium market, while at the same time attempting to reduce the costs associated with producing its products.
The chip manufacturing unit of the company will discuss issues such as the long-term plans of the company to increase the competitiveness of its system chips on the table during its meeting.
As part of the inspection, the committee will also inspect the construction of the foundry semiconductor chip manufacturing plant that the chipmaker plans to complete in Texas by the year 2024.
The outlook for Samsung in the fourth quarter is gloomy due to the sluggish semiconductor sector, which has adverse effects on Samsung’s business.
There have been major headwinds in its main semiconductor business in the third quarter due to weakening memory chip prices and demand in the entire semiconductor industry.
This negatively affected the company’s earnings. It is the world’s largest maker of memory chips and mobile phones.
During the July-September period, Samsung’s operating profit and net profit both fell by 31.4 percent and 23.6 percent, respectively, compared to the same period last year, according to its regulatory filings.
At the end of the third quarter of last year, the company reported approximately 57.3 trillion won ($4.38 billion) in inventory assets, an increase of 38.5 percent over the same period in the previous year.
A rise of almost 10 trillion won in its semiconductor inventory in the cited period was also reported, according to the filings. This brought its total inventory to 26.4 trillion won.
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