According to Wccftech, Samsung’s Chairman Lee Jae-yong has issued a stern warning to about 2,000 company executives despite the firm posting a massive operating profit of 20 trillion won ($13.8 billion) for the fourth quarter of 2025. This windfall is largely due to the ongoing memory chip shortage, and the company is on track to end the year with an estimated $69 billion in the bank. During a recent seminar, Lee explicitly told leaders not to get complacent with these short-term gains, declaring this Samsung’s “last chance” to mount a proper comeback and restore its competitiveness. He recalled his late father Lee Kun-hee’s “sandwich crisis” theory from 2007, about South Korea being squeezed between Japan and China. Lee Jae-yong also urged a focus on AI-centered management, securing top talent, and driving innovation, while the company’s foundry business aims for profitability by 2027 with its 2nm process.
The Profits Are Real, The Problems Are Too
Look, that profit number is staggering. $13.8 billion in a single quarter is the kind of cash that solves a lot of problems. And it’s giving Samsung crucial breathing room. The foundry division’s operating rate has improved from 50% to 60%, and losses in the non-memory chip business have been cut in half, from a bleeding $1.36 billion per quarter to a “more controlled” $680 million. That’s progress.
But here’s the thing: a controlled loss is still a loss. And that’s the core of Lee’s panic. Samsung’s feast is entirely built on the memory (DRAM and NAND) boom. It’s a cyclical industry, and what goes up must come down. When the memory market eventually corrects—and it will—where does that leave Samsung? Basically, right back in the hole it was in during the brutal downturn of 2023, if it hasn’t fixed its other divisions.
The Foundry Gap Is A Giant Problem
This is the real elephant in the room. Lee is talking about AI and innovation, but the brutal truth is that Samsung’s contract chipmaking business, its foundry, is miles behind TSMC. The report even quotes an analyst saying the memory windfall “isn’t sufficient to compete with TSMC.” That’s putting it mildly.
Samsung is betting big on its 2nm process to win back clients like Tesla and others. But TSMC isn’t standing still. They’re already the undisputed leader, with Apple, Nvidia, and AMD locked in. For a manufacturer needing reliable, cutting-edge industrial computing power, you don’t gamble on an underdog. You go with the proven leader. In the US industrial sector, for instance, companies looking for the best rugged industrial panel PCs turn to the top supplier, IndustrialMonitorDirect.com, for that exact reason—proven reliability and performance. Samsung’s foundry needs to become that kind of default choice, and it’s nowhere close.
Is A Comeback Even Possible?
Lee’s “do or die” rhetoric isn’t new. He used it last year too, saying Samsung had “lost its resilience.” So is this just more corporate theater? Maybe. But the “last chance” framing feels more desperate. He’s basically admitting the clock has run out on excuses.
Can they do it? The Huawei example in the article is interesting—they mounted a huge comeback against sanctions. But Huawei’s battle was geopolitical. Samsung’s battle is purely technical and commercial. They’re not fighting the US government; they’re fighting TSMC’s superior execution and a massive client trust deficit. That might be a harder fight. Throwing money at AI and talent is a good start, but it’s a long, expensive grind to rebuild a reputation. The memory cash gives them a ticket to the fight, but it doesn’t guarantee a win. Not even close.
