There are many factors involved in the success of a private enterprise. It is intertwined with internal capacity as well as external conditions. Samsung has done a tremendous job of being a formidable chip producer in short time period... Samsung’s huge success in DRAMs has also been linked to Korea’s unique industrial structure and export-led growth strategy...
The semiconductor industry constitutes a large portion in the Korean economy than it does in the United States or Japan – about 15 percent of exports. The Korean economy has been very exposed to fluctuations in semiconductor prices due to its boom and bust industry cycles... Samsung Semiconductor has been also exposed to changes in semiconductor prices. The semiconductor business accounts for a larger share of its entire business portfolio...
Despite its phenomenal success in the semiconductor business, Samsung faces daunting challenges. As Samsung enters the upper stage of value chain with enhanced technological capabilities, it needs to tackle many formidable issues. One of the key challenges Samsung faces in the chip business is...
Given the short history of Korea’s semiconductor industry and poorly developed NIS, Samsung may not tackle its entire challenge on its own. Policies and initiatives at the national level may be needed to intervene. Although this has been discussed for some time, the things have not changed much.
A question may be raised as to whether its semiconductor development model and trajectory were done at the expense of other economic development opportunities. Samsung’s semiconductor business generated the development model that has far reaching consequences in the Korean economic scene...
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