Lee Jae-yong says Samsung is losing its edge to Japan and China

Samsung cashed in big, leadership slammed the brakes, and the company bets on AI and chips while chasing a tougher comeback.

Profit surge and cash pile

• Samsung logged roughly 20 trillion won in operating profit during Q4 2025.
• Cash reserves eye about $69 billion by year's end.
• Memory shortages handed Samsung a temporary edge.

Chairman's warning to executives

• Lee Jae-yong addressed around 2,000 senior leaders directly.
• He warned against chasing quick wins and relaxing standards.
• He framed this period as a final rebound window.

Old fears and internal criticism

• Lee revived Lee Kun-hee’s sandwich crisis warning from 2007.
• Japan stayed ahead technologically, while China pressed from below.
• Lee said Samsung lost grit, demanding a do-or-die posture.

AI focus and chip recovery plan

• Management pushed AI-first operations and elite hiring.
• Foundry profitability is targeted for 2027.
• The 2nm GAA line gained traction with clients like Tesla.

Foundry limits and competition reality

• Factory utilization rose from roughly 50 percent to 60 percent.
• Non-memory losses narrowed to about 1 trillion won per quarter.
• Industry watchers doubt Samsung can match TSMC yet.
• Huawei-style comebacks keep optimists watching closely.