Samsung Electronics, South Korea's number one chaebol, was once a rare giant in the world, but now it is in serious trouble. In recent years, Samsung's revenue has been declining, with a market value of **776%, up to $180 billion. This figure is really jaw-dropping, and it has also made foreign media call it a "huge shame".
Samsung's predicament can be said to have come hard-won. As a world-renowned leader in the fields of mobile phones, chips, and LCD panels, Samsung once enjoyed a high reputation. However, in the competition in recent years, the rise of Chinese technology companies has given Samsung a blow to the head. Especially in the Chinese market, Samsung's mobile phone business has long since lost its competitiveness, and the low-price strategy has led to extremely low profit margins, while 83% of profits are divided by Apple. At the same time, affected by US sanctions, Samsung's chip business has also been hit hard, with tens of billions of dollars worth of chips backlogged in warehouses and unable to be sold. In addition, China's LCD panel company BOE has also risen rapidly, and Samsung has had to abandon the business and withdraw from the Chinese market.
Faced with such a grim reality, Samsung began to actively seek opportunities to save itself. The Chinese market has become a lifesaver for them. Recently, Samsung announced that it will invest 180 billion yuan in Xi'an, China, to build a memory chip factory. This decision makes people can't help but appeal, "Samsung, you've finally come to your senses!".”。In addition, Samsung has also actively communicated with South Korea** to obtain an indefinite exemption from the United States for its factories in China.
However, it's worth noting that with the rapid growth of China's homegrown tech companies, Samsung's comeback may be a little late. China's memory chip business is booming, and companies including Changxin Storage, Yangtze River Storage, and GigaDevice have taken the lead, ousting Samsung from the throne. In the face of such strong competition, it will take time to verify whether Samsung can regain market share.
In this whole incident, the decision of South Korea's ** Yoon Suk-yeol is considered one of the main reasons why Samsung is in trouble. Under the guidance of the United States, he chose to join the chip sanctions, leaving the Chinese market behind, causing a number of South Korean companies to collectively explode. Such a decision is obviously a huge mistake, exposing South Korea's overly arrogant attitude towards the Chinese market and misjudgment of China's technological development. In contrast, China's technology companies are constantly catching up, showing strong competitiveness and innovation.
Overall, Samsung is facing great challenges and pressures. The rapid growth of the Chinese market has made the South Korean giants re-aware of the criticality of the mainland market, but it is still unclear whether they will succeed in turning the tide. For South Korea, their pursuit of an alliance with the United States may bring them some short-term benefits, but this decoupling from China will only end up causing damage to South Korea itself. In today's increasingly fierce global competition in science and technology, only by keeping up with the trend of the times and truly achieving win-win cooperation can we achieve greater development opportunities in the future.
Here, I would like to share some personal reflections on this event. Competition in the tech sector is fierce and unforgiving, and one wrong decision by a weak person is enough to take him from the top to the bottom. As a world-renowned company, Samsung once led the market alone, but it fell into trouble because of its own wrong choice. This is a wake-up call for us to stay humble and clear-headed, and to adjust and change our strategies in a timely manner. At the same time, we are also seeing the rise and strength of Chinese technology companies, which is encouraging and proud. As a creator of science and technology, we should continue to maintain the spirit of innovation and hard work, promote scientific and technological progress, and contribute to the development of the country and society. Only by constantly learning and Xi and making progress can we maintain competitiveness in the fierce market competition and grasp the opportunities of the future.