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Can Samsung get its mojo back?

Livemint · 1m

- Samsung Electronics is known for its vertical integration, with smartphones and consumer electronics accounting for half of its revenue and a quarter of its operating profit. - The company reported a 16-fold increase in operating profit in the most recent quarter, driven by growth in its chip business due to high demand from tech giants like Microsoft and Alphabet. - However, Samsung is struggling to compete in both logic chips and memory chips, losing ground to competitors like TSMC in chip foundry business and SK Hynix in high-bandwidth memory (HBM) chips. - Chinese companies are also challenging Samsung in the display market, especially in organic light-emitting diode (OLED) screens, where BOE Technologies has gained prominence. - Samsung is facing internal challenges as well, with a recent work stoppage by thousands of employees protesting over pay and conditions. - Despite these challenges, there are some positive developments for Samsung, such as its HBM3 chips being accepted by Nvidia and plans to begin mass production of cutting-edge logic chips in 2025.