Samsung is a giant company. It produces much stuff, from phones and chips. And now it’s sorry. Not because it loves apologizing. But because it doesn’t like its current position. It managed to make a profit of $6.8 billion. Sounds nice, is not it? But for them, that’s just not enough. According to experts, they should have done much better. Samsung is in crisis, and they are afraid.
What Happened?
The actual issue for Samsung lies in their chips. These are the specific chips used for AI models. AI models help computers learn and also make smart decisions. Companies like Nvidia require these chips for their products. They are the biggest AI parts supplier. Nvidia wants to acquire more chips from Samsung. However, Samsung cannot provide them with that. It is a big issue because Samsung is losing a lot of money in such a situation.
Late Shipments
The head of Samsung’s chip unit admitted they are in bad shape. They said they are not keeping up. They said they are running behind with shipments. That is why Nvidia is looking elsewhere for its chips, SK Hynix. It fills the blanks that the former cannot. That spells a lot of lost dough for Samsung.

Competition with TSMC
Samsung has other issues with TSMC. TSMC is the largest chip manufacturer on Earth. They produce chips for many companies, just like Samsung. Both companies are able to produce special chips for the clients. Samsung has enough money and means for the competition. Still, they fall behind. This annoys their shareholders. Samsung stock falls, losing more than 20% of its value this year.
Why Samsung is important for South Korea
It is not only a company, but very important for South Korea. This is one of the biggest companies within the country. Samsung is part of a group called “chaebols.” These are large companies held by the private control of one family. They carry a lot of wealth and deliver many jobs to the people. About 15% of South Korea’s economy accounts for Samsung. If things are not working well there, then the whole country can suffer.

Current Issues
As against the current upgrade in recent technology, Samsung has been on a rough rollercoaster ride. The investors have not really been pleased with their work. Even the labourers are protesting against them. A few workers went on strike at South Korea and India. They demanded higher wage scales and better working conditions. On the other hand, Samsung is also thinking of sacking up to 30% of its total workers. It is huge worker recruitment knockdown.

Threats from AI
Samsung is fighting hard with AI, which seems to be the talk of the town these days. AI is changing the face of technology so fast. Companies are pumping millions into AI. However, Samsung is not on the same page. It needs correction in the quick space of time. The demand for chips is slowing down. The huge tech companies are taking care and waiting to see whether their earlier investments have been fruitful or not.
The Perfect Storm
For Samsung, this is bad news. They are missing out to their competitors. New business is slowing down simultaneously. It’s almost like a perfect storm for them. Change needs to come quickly, because it would significantly determine their future based on the impact they could create to rectify these ills.
Conclusion
Samsung is a tech giant, but the company now faces critical challenges. They have to get back on track and retrieve their position. It will not be easy, but it is important for them and for South Korea. Everybody wants to know how they will survive this tough time.