Samsung Electronics has made significant changes to its leadership team, including appointing new heads for its memory and foundry chip units. The move comes as the company aims to strengthen its position in the growing AI chip market, where it has been struggling to keep up with competitors like SK Hynix and Taiwan's TSMC.
The reshuffle comes amid growing concerns from investors about Samsung’s ability to compete in the high-end chip market, especially with AI chip designer Nvidia. Since August, Samsung's shares have steadily declined, reflecting market uncertainty about the company's competitiveness.
As part of the reshuffle, Jun Young-hyun has been named co-CEO and will take charge of Samsung's memory chip business. Han Jin-man has been appointed president and head of the foundry business. Meanwhile, President and CFO Park Hark-kyu has moved to the Business Support Task Force, and Samsung has not yet announced a new CFO.
Despite the leadership changes, Samsung's share price fell by 2% at market open, signaling that investor concerns about its ability to stay ahead of rivals remain high. Jun, who has been overseeing the semiconductor division since May, is now taking direct control of the memory chip business. This move comes after Samsung faced a 40% profit drop in its semiconductor division last quarter, partly due to delays in its AI chip business with a major customer.
KB Securities' head of research, Jeff Kim, suggested that the leadership shake-up is an effort to support Jun's strategy for revitalizing the company’s memory chip division and improving its competitiveness. With more authority over memory, Jun can now implement his vision to close the gap with rivals and stabilize the business.
In a rare public statement, Samsung's Chairman Jay Y. Lee acknowledged the company's challenges, especially in light of recent concerns about its future. Lee made the comments during the final hearing of an accounting fraud trial in which he is a defendant, though he denies any wrongdoing.
This week's reshuffle also saw Nam Seok-woo, who previously led chip factory engineering and operations, appointed as the chief technology officer of the foundry business. Additionally, a new president for management strategy was named at Samsung's Device Solutions division.
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