The approval is a temporary relief for the South Korean firms and follows a U.S. decision earlier this year to revoke license waivers given to ​some tech companies [File]
| Photo Credit: REUTERS

Just a few months ago, Samsung Electronics Co. looked primed to benefit from the global AI boom: profits were surging and its stock was rising toward an all-time high. Now, South Korea’s biggest company has become a stark example of how quickly fortunes can turn in an industry where the spoils go to those who maintain a technological edge.

As concerns mount that the company is losing out to smaller rival SK Hynix Inc. in AI memory and failing to gain on Taiwan Semiconductor Manufacturing Co. in outsourced chipmaking, Samsung shares have tumbled 32% from this year’s peak on July 9. The company has lost $122 billion of market value in that span, more than any other chipmaker worldwide.

Samsung has promised an overhaul to regain competitiveness, but international money managers including Pictet Asset Management Ltd. and Janus Henderson Investors SP Ltd. are unconvinced a turnaround is imminent. Overseas investors have sold about $10.7 billion worth of the South Korean company’s shares on a net basis since the end of July.

“We have more than halved our position in Samsung over the last few months – it was the largest position in our strategy in July,” said Sat Duhra, a portfolio manager at Janus Henderson Investors SP in Singapore. While Duhra said the shares have fallen to an attractive valuation, he has “no intention” to buy them for now.

Fading Fast

Smartphones and other consumer electronics still account for the biggest share of Samsung’s sales, but semiconductors have been contributing the most profit in recent years. With the recent crisis in its chip business, the Suwon-based company issued a rare apology to investors earlier this month for disappointing results.

The company’s story highlights how AI is the key factor minting winners and losers in today’s chip sector. While foreign investors have led an exodus from Samsung, Nvidia Corp. has become one of the world’s largest companies. TSMC, the key maker of chips designed by Nvidia and Apple Inc., has added over $330 billion in market value this year.

Things went south for Samsung quickly. Its stock flirted with a record high after it posted a 15-fold surge in operating profit for the June quarter. As recently as August, investors were optimistic it could win more business supplying Nvidia with high-bandwidth memory to work alongside AI processors.

That hope has been snuffed out with the company admitting delays with its latest-generation HBM chips in early October, soon after SK Hynix said it had begun volume production. Meanwhile, US rival Micron Technology Inc. is stepping up efforts in HBM as well, and has reported strong demand for its offerings.

Samsung is “losing its technology leadership in the semiconductor business,” said Young Jae Lee, London-based senior investment manager of the global emerging markets high-dividend team at Pictet Asset Management. “Technology leadership is difficult to regain in the short term by nature,” he said, adding that the firm has been reducing its Samsung holding.

Management Issues

Beyond its lag in AI memory, Samsung has struggled with a costly, yearslong effort to close the gap with TSMC in foundry business. Like Intel Corp. – which has run into similar difficulty with plans to expand its outsourced chipmaking operations – the Korean firm is now moving to cut jobs and make other efforts to stop the bleeding.

Samsung is holding a conference call on Thursday after it releases detailed third-quarter earnings. Among points to watch is an expected management reshuffle before the end of the year, amid ongoing uncertainty over company leadership.

Jay Y Lee – a grandson of Samsung’s founder who was appointed executive chairman two years ago – was acquitted of stock manipulation charges in February after years of legal issues. Three months later, the company unexpectedly replaced its semiconductor division head with Jun Young-hyun, a memory chip veteran.

Management may have its work cut out for it in trying to win back investors, even with stock valuations near a record low and technical indicators flashing oversold signals.

“We don’t see much is changing with the Samsung executives and engineers are leaving the company,” said Park Jinho, head of equity investment at NH-Amundi Asset Management Co. in Seoul. Park reduced Samsung to underweight from neutral at the end of the second quarter and added SK Hynix instead.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Chennai:

Over a month-long indefinite strike by the employees of Samsung India Electronics Ltd at its plant near here was called off on Tuesday and the workers have decided to resume work, the Tamil Nadu government said.

The state government in a statement said the strike at the factory of the Korean electronics giant in Sriperumbudur has come to an end and all the workers would get back to work.

Pressing for various demands, about 1,100 workers of the total 1,750 employees of Samsung India have been on strike since September 9, which includes wage revision, better work conditions, and registration of the newly formed Samsung India Workers Union backed by CITU by the labour department.

The decision to call off the strike was taken at the conciliatory meeting which was held at the office of the Department of Labour Welfare here on Tuesday in which representatives from the Samsung India and the striking workers took part.

“All the striking workers will call off the agitation and return to work immediately. On returning to work the management will not victimise the workers for having participated in the protest,” an official release said. 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Chennai:

Around 250 striking Samsung electronics workers were arrested by the Kancheepuram police today for allegedly occupying private land without permission and holding protests without permission.

The workers have been on strike for a month, demanding recognition of their union, pay revision, eight-hour work schedule and other benefits.

Last week, Samsung agreed to many of the demands, including a Rs five thousand increment, but refused to recognise the union. It also announced AC buses to transport all workers, Rs one lakh emergency relief to families in the event of the death of a worker and agreed to discuss other demands.

This led to a standoff between the workers and the management. The Tamil Nadu Finance Minister, Thangam Thennarasu, today appealed to the Centre of Indian Trade Unions (CITU) to withdraw the protest.

The workers claim they have permission from the landowner to gather and protest, but authorities removed the canopy they had set up.

The workers have approached the Madras High Court over the arrest and the court would hear the case later today.

Last night, seven Samsung workers were arrested and later released on bail for allegedly assaulting a police officer after a road accident unrelated to the protests. However, the workers on strike allege that the arrested workers have yet to return after bail.

Today, Tamil Nadu Finance Minister Thangam Thennarasu appealed to the CITU to withdraw the protest and assured that the state labour department will comply with the court order in the case over recognising the Samsung workers’ union. Claiming that the labour department could not register the union only because of objection by Samsung Electronics he assured the state would abide by the court order.

The arrest comes on a day a few leaders of the alliance parties of the ruling DMK, including the left and VCK, had scheduled to visit protesters.

It’s not clear yet if police would release the striking workers or remand them to judicial custody.

Even though Samsung production was hit hard earlier, the company soon managed to keep the impact minimal by roping in contract workers and its logistics team. Earlier Samsung’s legal counsel had said the company isn’t bound to recognise an unregistered workers’ union and that it would hold talks only with a committee of its workers.

Though the strike has come as an embarrassment for the ruling DMK which is on an overdrive to draw investments and generate jobs, government sources say they are working on a solution that would protect workers’ welfare and jobs for youth.

New Delhi:

India has overtaken the US to become the world’s second-biggest 5G handset market for the first time, behind China, a report has mentioned.

Global 5G handset shipments grew 20 per cent (year-on-year) in the first half of 2024, according to the Counterpoint Research. Apple led the 5G handset shipments, accounting for more than 25 per cent share.

Apple led the 5G handset shipments globally, accounting for more than 25 per cent share, driven by strong shipments of the iPhone 15 series and 14 series, reported news agency IANS.

5G handset shipments have been growing steadily and with the increased availability of 5G handsets in the budget segment, the emerging markets have witnessed high growth in this segment.

“India became the second-biggest 5G handset market during the first half, overtaking the US. The strong shipments from Xiaomi, Vivo, Samsung and other brands in the budget segment were the main reason for this trend,” said senior analyst Prachir Singh.

Samsung followed in the second position, capturing more than 21 per cent share, driven by the Galaxy A series and S24 series. Apple and Samsung took five spots each in the top-10 list for 5G models in the first half of 2024, with Apple taking the top four spots.

Other emerging markets also witnessed high growth in 5G handsets. Consumers in emerging markets are looking at 5G handsets as an upgrade to their devices, even in the lower price segments.

Asia-Pacific accounted for 63 per cent of the overall global net adds and commanded a 58 per cent 5G shipment share. In Europe and the Middle East and Africa (MEA) regions also, 5G handset shipments witnessed double-digit growth.

Research Director Tarun Pathak said that as the democratisation of 5G handsets increases with increasing 5G penetration in lower price segments as well as increasing expansion of 5G networks, this trend will further grow.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

New Delhi:

India has overtaken the US to become the world’s second-biggest 5G handset market for the first time, behind China, a report has mentioned.

Global 5G handset shipments grew 20 per cent (year-on-year) in the first half of 2024, according to the Counterpoint Research. Apple led the 5G handset shipments, accounting for more than 25 per cent share.

Apple led the 5G handset shipments globally, accounting for more than 25 per cent share, driven by strong shipments of the iPhone 15 series and 14 series, reported news agency IANS.

5G handset shipments have been growing steadily and with the increased availability of 5G handsets in the budget segment, the emerging markets have witnessed high growth in this segment.

“India became the second-biggest 5G handset market during the first half, overtaking the US. The strong shipments from Xiaomi, Vivo, Samsung and other brands in the budget segment were the main reason for this trend,” said senior analyst Prachir Singh.

Samsung followed in the second position, capturing more than 21 per cent share, driven by the Galaxy A series and S24 series. Apple and Samsung took five spots each in the top-10 list for 5G models in the first half of 2024, with Apple taking the top four spots.

Other emerging markets also witnessed high growth in 5G handsets. Consumers in emerging markets are looking at 5G handsets as an upgrade to their devices, even in the lower price segments.

Asia-Pacific accounted for 63 per cent of the overall global net adds and commanded a 58 per cent 5G shipment share. In Europe and the Middle East and Africa (MEA) regions also, 5G handset shipments witnessed double-digit growth.

Research Director Tarun Pathak said that as the democratisation of 5G handsets increases with increasing 5G penetration in lower price segments as well as increasing expansion of 5G networks, this trend will further grow.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Samsung, one of the leading manufacturers of Android phones, has taken a jibe at Apple for switching to USB Type-C from lightning port in its latest iPhones and Airpods. In a post on X (formerly Twitter), the South Korean tech giant said they can “C” the change that it magical. Apple unveiled its new line-up of iPhone with the Type-C port after a tussle with the European Union (EU). The new port will offer faster charging and data transfer speeds.

At least we can C one change that’s magical

— Samsung Mobile US (@SamsungMobileUS) September 12, 2023

Samsung’s post has been views more than one million times. But internet is divided, with some users praising Apple’s ecosystem and others giving Android ecosystem made by Samsung thumbs up.

“Y’all should give it a rest. Y’all use iPhone to chase clout every year. All these tweets still won’t make us buy samsung products,” commented one user.

“Win win for Samsung. Samsung is Apple’s biggest supplier of components, providing them with a wide range of parts, including displays, memory chips, and processors. This relationship has been going on for many years, and it is mutually beneficial to both companies,” said another. “Not even funny. And iPhone is a way more better btw,” a third user added.

Others, however, enjoyed the ongoing rivalry between two tech giants.

“We C what you did there,” commented one user. “Samsung handler deserves a raise,” said another.

After last year’s event, the Seoul-based company had mocked Apple over its “lack of innovation” even before the launch of the iPhone 14.

In an ad, Samsung showcased some of its high-end features and 120X zoom available in its flagship device. “This innovation is not coming soon to an iPhone near you,” the company had said.

Then in November 2022, Samsung again mocked Apple while reacting to reports that the iPhone maker is working on a foldable phone.

Samsung said in its ad that Apple always makes iPhone users wait for new and useful features.