Samsung Electronics is a truly legendary presence in today’s tech world.
For many tech products, Samsung ranks number one globally, such as in smartphones, memory chips, OLED panels, TVs, and more.
However, in recent years, things have become increasingly difficult for Samsung, as its businesses have faced fierce competition—especially from Chinese companies.
Recently, Samsung Electronics Chairman Lee Jae-yong warned executives that “Samsung is facing a matter of survival,” saying that now it’s a case of “fight or die,” and calling on them to continue fighting with Samsung’s indomitable spirit.
In fact, Lee Jae-yong isn’t exaggerating—Samsung really is at a critical survival moment. Let’s analyze Samsung’s various business segments one by one to understand why.
Starting with smartphones—Samsung used to be the global leader by a wide margin, holding about 25% market share. But it lost the Chinese market, and globally, it has been squeezed by brands like Apple and Xiaomi. By 2024, its global market share had dropped to 18.3%, a five-year low.
In the memory chip sector, Samsung once led globally in both DRAM and NAND, with a market share exceeding 40%. But now, its share is steadily declining. In 2024, DRAM fell to 41.5%, and NAND flash dropped to 32.5%.
In the HBM sector—AI-specific cache memory chips—Samsung lags far behind domestic rival SK Hynix, with only about one-third of their market share.
Moreover, in NAND and DRAM flash memory, Samsung also faces intense competition from Chinese companies.
Now looking at TVs—Samsung once held more than 35% of the market, but with the rise of Chinese firms, its share has been shrinking. By 2024, it had fallen to just 28.3%, unable to even maintain 30%.
In chip foundry services, Samsung is also faltering. In Q4 of 2024, it reported a loss of 2 trillion won (about $1.4 billion), and its market share dropped to around 8%, down from a peak of over 20%.
Samsung’s chip foundry business has struggled ever since Liang Mong-song left. Its advanced manufacturing processes can’t compete with TSMC; the yield rate for its 3nm chips is reportedly only 20%, making clients hesitant to adopt them. Meanwhile, for mature process chips, it’s facing growing competition from companies like SMIC, making the business increasingly difficult.
As for LCD panels, Samsung has withdrawn from the market, unable to compete with Chinese companies, and was forced to give up.
In OLED panels, Samsung once held over 90% of the market, but now it’s down to around 60% and continues to decline, as Chinese firms deliver increasingly strong performances.
The same trend applies to TWS earbuds, tablets, smartwatches, refrigerators, washing machines, and many other products. Under competition from Chinese companies, Samsung’s market share continues to fall, which is why Chairman Lee Jae-yong issued such a strong warning.
But the question is—can the company really turn things around just by having executives push harder and embrace a “fight or die” mentality? Personally, I don’t think so. Samsung’s decline seems inevitable. It’s tied to the changing times and the rise of China’s tech industry.
In truth, it’s not that Samsung did something wrong—it’s that the era is changing. Samsung rose by aligning itself with the U.S. when China was still catching up. It benefited from being in the right place at the right time. But now, siding with the U.S. isn’t enough—because Chinese technology has risen.
Source: Internet
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