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Samsung Electronics Co.\u2019s chip business leader warned that Korea\u2019s largest company risked getting caught in a \u201cvicious cycle\u201d if it didn\u2019t revamp its workplace culture, in an unusually harsh memo issued to employees months after taking the helm.\u00a0<\/p>\n
Jun Young-hyun, who ascended to the role after his predecessor allowed SK Hynix Inc. to\u00a0take a big lead<\/a>\u00a0in AI memory chips, said his division\u2019s recent turnaround was based largely on a market rebound. To sustain that recovery, Samsung must take steps<\/a> to eradicate communication barriers between departments and stop \u201chiding or avoiding problems,\u201d he said in a staff memo seen by Bloomberg News.<\/p>\n The executive\u2019s communique reflects\u00a0frustration<\/a>\u00a0over Samsung\u2019s missteps in the hot new market of supplying memory chips for \u00a0Nvidia Corp. AI accelerators. While the company this week\u00a0reported<\/a>\u00a0its fastest pace of net income growth since 2010, Jun listed a litany of issues eroding Samsung\u2019s long-term competitiveness.<\/p>\n \u201cWe need to rebuild the culture of fierce debate that is unique to semiconductors,\u201d the 63-year-old engineer wrote in his brief memo. \u201cIf we rely on the market without restoring fundamental competitiveness, we will be stuck in a vicious cycle that will repeat last year\u2019s situation.\u201d<\/p>\n Read More:\u00a0Samsung Profit Surge Fuels Plan to Boost High-End Memory Output<\/a><\/p>\n Still, the conglomerate is beginning to make progress in narrowing the gap with SK Hynix.\u00a0<\/p>\n Samsung has made important headway in its comeback, including winning the long-awaited approval from Nvidia for a version of its high-bandwidth memory chips called HBM3, Bloomberg News\u00a0reported<\/a>\u00a0this week. It also anticipates approval for the next generation, HBM3E, in two to four months.<\/p>\n It\u2019s unusual \u2014 and humbling \u2014 for South Korea\u2019s largest company to be playing catchup. Historically, Samsung has led the way in the market, capitalizing on its scale and engineering expertise.<\/p>\n \u201cWe are currently in a difficult situation,\u201d Jun said. \u201cWith our accumulated research experience and know-how, we are confident that we will quickly regain our competitive edge.\u201d<\/p>\n<\/div>\n CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\nRecommended Newsletter:<\/strong><\/p>\n