Proactively communicating with partners, together building market competitiveness within semiconductor ecosystem

Samsung Electronics hosted a three-day semiconductor subcommittee meeting from July 4th to 6th with members of the Samsung Partners Association. The association, established in 1981 by 39 partners, is an organization of 208 members that functions as one of the main channels of communication aimed at promoting mutual progress through technical cooperation and business collaborations. Samsung Electronics and Samsung Partners Association have run separate subcommittee meetings for small and medium-sized chip-relevant companies. The subcommittee meetings have fostered synergy between Samsung Electronics and its partners, providing a platform to share business insights, discuss industry issues, and enhance mutual commitments to drive win-win cooperation. Over the three days of the meeting, 18 companies from the Facility A subcommittee, 17 companies from the Facility B subcommittee, and 21 companies from the Raw Materials subcommittee participated each day subsequently. Topics covered at the meeting included updates on the semiconductor market, sustainability strategies, win-win management policy, and an introduction to the Win-Win Cooperation Academy Advocate Program. Collaboration is key to progress the semiconductor industry At one of the sessions, Wan-young Jeong, the Director of the Win-Win Cooperation Center, presented on “Semiconductor Market Forecast for 2023” based on the trend analysis of semiconductors over the last two decades. Notably, Mr. Jeong placed special emphasis on the importance of strong bonds within the semiconductor ecosystem. "The semiconductor industry is a technology-intensive organization that cannot progress with a single technology or a single company. It can only be developed through collaborations and mutually beneficial partnerships in various areas of the business,” he said. “One way South Korea can continue to be competitive in this industry is by growing together all together, whether big or small."

"As ESG management is growing to become a more prominent factor in our business, Samsung Electronics provides customized ESG management consulting for partners and shares best practices in regard to ESG to help our partners also implement their own ESG management system," said Mr. Jeong. "We will continue to develop and expand customized support programs for small and medium-sized partners so that they may also compete in the global market." Sustainability for all in the semiconductor ecosystem

Hak-Chul Lee, from the division’s sustainability management, also joined and shared Samsung Electronics’ ambition to build "Sustainable Management for All," which delineated Samsung Electronics' sustainable practices and collaboration with partners in areas of environment, labor and human rights, social contributions, and the sustainable supply chain. “Building sustainability in our industry requires a collective effort, and both Samsung Electronics and partners must work together,” said Mr. Lee. “To this end, we will do our best to build a sustainable ecosystem by operating and expanding programs to strengthen our partners’ ESG management capabilities." Members of the Partners Association also brought in questions on topics such as Scope 3 carbon emissions.

Jin-soo Park, Vice President of the Win-Win Cooperation Center, emphasized the necessity of win-win cooperations in the semiconductor industry and outlined Samsung Electronics' strategic approach. He underscored that semiconductors cannot be produced by a single company's technology and capabilities alone because of the industry’s rigorous and exacting technical demands. For this reason, Samsung Electronics conducts mutual growth activities through financial funding, innovation support, and mental support based on the company’s foundational philosophy that "the competitiveness of our partners is the competitiveness of Samsung Electronics.” "Samsung Electronics aspires to maintain our strong competitiveness in the semiconductor ecosystem. Rather than maintaining our 11-year’s running title, we would like to have actual practicality in our approach as it pertains to maintaining our competitiveness with our partners. To that end, we will continue our win-win activities until each member of our partners secures strong competitiveness in the market." said Vice President Park.

At the following “Consulting and Education Programs to Enhance Partners' Competitiveness” session, Byung-doo Moon, Group Head of the Win-Win Cooperation Academy, also shared some changes in the Win-Win Advocate Program and consultation training programs at the Win-Win Cooperation Academy. Mr. Moon explained, "In order to develop effective education and consulting programs with partners, active participation and feedback from partners are fundamental. Samsung Electronics will continue to communicate with our partners to provide necessary support and do our best to ensure sustainable growth in the semiconductor ecosystem."

The meeting closed with an open Q&A led by Young-joo Shin, Head of the Equipment Purchasing Group, with members in relation to procurement policies.

Heung-sik Oh, CEO of LOT Vacuum, a meeting attendee, emphasized the importance of communication. He said, "I believe that communication is the core value of mutual growth. Our consistent communication efforts with Samsung Electronics are helping us to innovate technology, foster talent, and secure funding. We believe communication will not only help partners gain a competitive edge but also strengthen the semiconductor ecosystem."

As a leader in the semiconductor ecosystem, Samsung Electronics will continue to make efforts to help its partners grow, remain competitive, and also be an advocate of their ESG activities for sustainable growth.