Samsung Electronics has recently announced a strategic pivot as it grapples with significant challenges in the competitive tech landscape. Co-CEO Han Jong-hee revealed during a shareholder meeting that the company would actively pursue mergers and acquisitions to stimulate growth, following a disappointing performance in the stock market and a failure to capitalize on the booming artificial intelligence (AI) sector. Samsung's stock plummeted nearly 33% last year, making it one of the worst-performing tech stocks, while rivals like SK Hynix saw their shares rise by 26%. This decline has prompted shareholders to demand more aggressive strategies to enhance stock value and regain market competitiveness.

The South Korean tech giant has faced mounting pressure due to its lag in advanced memory chip production and contract chip manufacturing, both critical areas experiencing heightened demand driven by AI initiatives. In response to shareholder concerns, Han expressed regret over the company's recent performance, stating, "I apologize for recent stock not meeting expectations." He emphasized that 2025 would be a challenging year, largely due to uncertainties in global economic policies. To counteract these issues, Samsung aims to forge "meaningful" partnerships and explore significant M&A opportunities that could provide tangible results.

Internally, Samsung has acknowledged its shortcomings, particularly in the semiconductor sector, where it trails behind competitors in high-bandwidth memory (HBM) chips crucial for AI applications. Chairman Jay Y. Lee conveyed concerns regarding the company's technological edge, indicating that efforts to innovate have stagnated. He noted that maintaining the status quo is insufficient for future growth and urged for a renewed focus on innovation and addressing new challenges. This introspection reflects a broader recognition within Samsung of the need to adapt and evolve in a rapidly changing market environment.

In addition to exploring M&A opportunities, Samsung has also implemented measures such as a substantial share buyback program worth 10 trillion won ($7.2 billion) in an attempt to bolster investor confidence following its stock's four-year low. The company has seen some recovery since then, with shares increasing by approximately 7%. However, as it navigates these turbulent waters, Samsung remains vigilant about external factors, including intensified competition from TSMC in contract chip production and pressures from Apple and Chinese smartphone manufacturers. The coming months will be critical for Samsung as it seeks to redefine its growth trajectory amid a challenging economic landscape.