Samsung's Chip Business Head Warns of Vicious Cycle, Urges Reform

TapTechNews August 1st news, according to Bloomberg, JunYoung-hyun, the head of Samsung Electronics' chip business, recently sent a sternly worded memo to employees, warning that if the company does not reform its work culture, it may fall into a vicious cycle.

JunYoung-hyun said that the recent performance rebound of this department is mainly due to the market rebound. In order to maintain this recovery, Samsung must take measures to eliminate communication barriers between departments and stop hiding or avoiding problems.

TapTechNews noted that although Samsung announced the fastest growth rate of net profit since 2010 this week, JunYoung-hyun listed a series of problems that erode Samsung's long-term competitiveness. The 63-year-old engineer wrote in a brief memo: We need to rebuild the intense debating culture unique to semiconductors. If we rely on the market without restoring the basic competitiveness, we will fall into a vicious cycle and repeat the mistakes of last year.

However, this South Korean giant is beginning to narrow the gap with SK Hynix. Bloomberg News earlier reported that Samsung won Nvidia's certification for its high-bandwidth memory chip called HBM3 and is expected to obtain the certification of the next-generation HBM3E in two to four months.

JunYoung-hyun said: We are currently in a difficult situation. With our accumulated research experience and proprietary technology, we are confident to quickly restore our competitive advantage.