Samsung appoints new CEO to stay relevant in chip biz

Seoul: Samsung Electronics announced a major leadership overhaul on Wednesday, focusing on its semiconductor business to boost competitiveness in the face of industry challenges and lagging performance.

Jun Young-hyun, vice chairman and head of the Device Solutions (DS) division, has been appointed CEO. He will also oversee the memory business and the Samsung Advanced Institute of Technology. Jun, who assumed his DS division role in May, has already established a high-bandwidth memory (HBM) development team within a month of taking office. According to Yonhap news agency, he has vowed to reclaim Samsung's leadership in the global chip market.

Han Jin-man, formerly executive vice president and president of Device Solutions America, has been promoted to president and will lead the foundry business, which has suffered significant losses. Han's expertise and global client network are expected to enhance the competitiveness of the struggling unit.

Samsung has also introduced a new chief technology officer position for the foundry business, appointing Nam Seok-woo, the former president and head of FAB Engineering & Operations, to the role.

Kim Yong-kwan, previously executive vice president of a business support taskforce, has been named president of management strategy within the DS division. In total, the reshuffle affected nine officials, seven of whom have been reassigned to new roles.

The company stated that the changes aim to provide veteran executives with "global leadership" and "excellent management capabilities" to foster mid- to long-term growth while driving innovation in branding and consumer experiences.

Samsung has faced a challenging year, marked by disappointing earnings and fierce competition in the global artificial intelligence chip market. During the July-September quarter, the company’s chip division reported an operating profit of 3.86 trillion won, a sharp decline from the 6.45 trillion won recorded in the previous quarter.

In the high-value HBM chip market, Samsung trails behind its local rival SK Hynix, which has begun mass production of the industry-leading 12-layer HBM3E chips. Samsung’s HBM3E products are still undergoing qualification testing by Nvidia Corp., a major customer in the AI sector.

Earlier this month, Samsung’s shares hit a three-year low of 49,900 won ($35.71), prompting the company to initiate a share buyback program. By Tuesday, the stock had recovered to 58,300 won.

The leadership reshuffle reflects Samsung's efforts to revitalize its chip business and address its current challenges in an increasingly competitive global market.

With IANS inputs