Samsung can't afford it anymore, its 8-month profit has plummeted by 99.3%! Korean media angrily rebukes: Shame in Shame

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Title:

Samsung: Challenges and Opportunities

Introduction:

Samsung, once a pillar of South Korean economy, is now in an unprecedented predicament. In the second quarter of 2023, Samsung achieved a revenue of only 100.4 billion Korean won, a decrease of 99.3% compared to the same period last year. This has aroused widespread concern and concern in society. But this story is not just a crisis for a company, it also reflects the fierce competition and rapid changes in the global semiconductor market.

This article will delve into the challenges faced by Samsung and its possible solutions.

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Over time, Samsung Electronics, which has always been the backbone of South Korea's economy, has now fallen into an unprecedented predicament. In the second quarter of 2023, Samsung's revenue was only 100.4 billion Korean won, a shocking 99.3% decrease compared to the same period last year. The astonishing decrease in this number has surpassed the recession during the 2008 subprime mortgage crisis, causing widespread concern and dissatisfaction from all sectors of society.

For a long time, Samsung has been the backbone of South Korea's economy, contributing 25% of the country's GDP.

Its position is not only enormous, but also crucial. However, the current profit of this massive enterprise is only 560 million Korean won, which is worrying. To explain this situation, the head of Samsung's chip department attempted to attribute the blame to the "global economic downturn," but Western media bluntly pointed out: "This is the price of leaving the Chinese market!" In fact, Samsung had offended Chinese customers and lost a huge market.

Looking back 20 years ago, the Chinese chip market was almost blank, and Samsung seized this opportunity to quickly enter the Chinese market, catching up with the biggest dividend period in the Chinese chip industry.

At that time, as the largest chip giant in China, it was able to generate over 200 billion US dollars in revenue in the Chinese market every year. However, the current situation seems to raise the question of whether Samsung suffered from its own mistakes?

It is undeniable that in 2021, Samsung's performance continued to improve and gained global reputation. Especially in the field of storage chips, Samsung, with its technological strength and market share, monopolizes a global share of 49%, earning at least 93.67 trillion Korean won annually. But what is little-known is that 29% of the revenue comes from the Chinese market. This indicates that the Chinese market has always been a key support point for Samsung's performance.

However, domestically produced chips in China are beginning to emerge, threatening Samsung's position in the Chinese market. The Chinese government has adopted a series of policies to support the development of the domestic semiconductor industry, including large-scale investment and technological innovation. This has enabled Chinese companies to provide more competitive products and gradually gained recognition in the domestic market. In this situation, Samsung's share in the Chinese market gradually decreases, and its revenue also decreases accordingly.

In order to regain its lost market share, Samsung seems to have begun to reflect and taken some measures to re-enter the Chinese market.

According to reports, Samsung has invested 180 billion Korean won to build a new factory in Xi'an, which is expected to generate an annual output value of up to 100 billion yuan. This indicates that Samsung is actively seeking to regain control of the Chinese market and is striving to adapt to market changes.

However, some experts and observers warn that restricting semiconductor exports to China is not wise, as it will only encourage China to accelerate chip research and further strengthen its position in the global semiconductor market. China has become an important force in the semiconductor industry, possessing world-class chip manufacturing capabilities and technological strength.

If Samsung wants to make a comeback in the Chinese market, it may need more strategy and investment to compete with Chinese competitors.

This situation has raised concerns about the future of South Korea. Samsung has always been a pillar of South Korea's economy, and its deterioration may have a profound impact on the entire country. If Samsung cannot effectively respond to market changes, South Korea may no longer be a "developed country" and may face more economic challenges.

Overall, Samsung's current predicament highlights the fierce competition and rapid changes in the global semiconductor market. The rise of China poses a challenge to the global semiconductor industry, while also bringing uncertainty to South Korea's economy.

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