[Infostock Daily= Reporter Lee Dong-hee] Samsung Electronics announced plans to continue its massive investment despite concerns over the economic downturn caused by the spread of new coronavirus infections (Corona 19 or COVID-19).

Samsung Electronics also expressed confidence in the market for consignment production (poundry) of semiconductors, saying, "The number of customers looking for Samsung is increasing."

Samsung Electronics held its 51st regular shareholders' meeting at Suwon Convention Center in Yeongtong-gu, Suwon, Gyeonggi Province on the 18th.

At the meeting, the agenda for approval of financial statements, appointment of in-house directors, and approval of the director's remuneration limit were discussed following business-specific sales reports such as device solutions (DS) such as semiconductors, consumer electronics (CE), IT and mobile (IM).

“In order to lead the future in any environmental change, we will continue to innovate technologies such as artificial intelligence (AI)-only semiconductors and foldable phones, and invest in future growth-based technologies such as system semiconductors and Quantum Dot (QD) displays to preempt business opportunities,” said Kim Ki-nam, vice chairman.

“System semiconductors are planning to invest 133 trillion won in R&D and production facilities by 2023,” said Kim Ki-nam, vice chairman of the company. “QD displays will invest 13 trillion won by 2025 while pursuing the project in earnest.”

Samsung Electronics predicted that short-term demand will decline due to the impact of Corona 19 on its semiconductor business, but it showed confidence in the recovery of the market this year.

“We expect uncertainties both inside and outside the country to continue this year,” said Kim Ki-nam, vice chairman of the company. “We expect demand for semiconductors to increase, including the growth of the AI and automotive semiconductor industry, the expansion of investment by data center companies, and the full-scale spread of 5G communications networks.”

This year, Samsung Electronics plans to focus on expanding the technology gap by developing 4th generation 10-nanometer DRAM and 7th generation V-NAND in memory. In addition, it plans to secure the initiative in the new growth market through the development of differentiated products such as high-bandwidth memory.

Vice Chairman Kim Ki-nam expressed confidence in foundry production.

"It is true that there is a gap between Samsung's foundry and the company in Taiwan (TSMC)," Kim said. "In terms of high-tech process, it is never inferior to Taiwanese companies."

Kim Ki-nam, vice chairman of the company, said, "Many foundry customers are coming to Samsung recently." We will make Samsung foundry further develop through the competitiveness leadership of advanced processes. "

Prior to the proposal, Kim Ki-nam, head of device solution (DS), Kim Hyun-seok, head of CE, and IM division head Ko Dong-jin explained the management status of each business division and answered shareholder questions. At the general shareholders' meeting, agenda items such as approval of financial statements, appointment of in-house directors, and approval of the remuneration limit for directors were also approved.

Vice Chairman Kim Ki-nam also explained the company's efforts to increase shareholder value.

Kim Ki-nam, vice chairman of the board, said, "In order to strengthen the responsibility management of the board, we appointed the outside director as the chairman and further improved the corporate governance structure." We recognized the importance of compliance and ethical management and established a compliance monitoring committee as an independent organization. "He said.

Samsung Electronics has decided to increase the convenience of shareholders' voting rights by introducing an electronic voting system as part of strengthening shareholder rights from the 51st shareholders' meeting.

Meanwhile, Samsung Electronics said last year that Samsung Electronics' business performance was 230 trillion won in sales and 28 trillion won in operating profit. CE division sales grew to 44.8 trillion won in operating profit to 2.6 trillion won, up from the previous year. TV and refrigerators ranked first in the global market share.

Reporter Lee Dong-hee nice1220@infostock.co.kr

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