Seoul: Samsung Electronics Co Ltd said Tuesday it will merge its mobile and consumer electronics divisions and name a new co-CEO in its biggest reshuffle since 2017 to simplify its structure and focus on growing its logic chip business. to be focused.
The sweeping move is the latest sign of centralized transformation at the world’s largest memory chip and smartphone maker, after Vice Chairman Jay Y Lee was paroleed from a bribery conviction in August.
The head of the visual display business, Han Jong-hee, was promoted to vice president and co-CEO, and will head the newly merged division to lead the mobile and consumer electronics as well as TV business.
Han has risen through the ranks in Samsung’s visual display business, without experience in mobile. Analysts said it was unclear what kind of changes or division of labor is expected under Han.
Kyung Kee-hyun, CEO samsung Electro-Mechanics, was named co-CEO of Samsung Electronics and will head the chip and components division.
The newly merged businesses differ in size. The mobile business reported 3.36 trillion won ($2.84 billion) in operating profit in the July-September quarter, while consumer electronics’ 760 billion won.
The reshuffle could help Samsung address challenges facing its mobile and consumer electronics businesses, which include better connecting devices to devices on a single platform that captures and keeps customers, analysts at Yunta Securities Korea Lee Jae-eun said.
But more immediate problems are lack of chip supply, rising raw material prices, logistics difficulties, and competition from Apple Inc. and Chinese rivals.
Other high-profile promotions include the naming of Vice Chairman Chung Hyun-ho as head of a “task force”, which analysts said is a central coordinating unit for decision-making at Samsung Electronics and affiliated companies.
“There may be more prompt execution of money or decision making,” said Kim Sun-wooAn analyst at Meritz Securities.
The last time Samsung Electronics named new division heads was in late 2017.
Samsung Group is focusing on areas such as semiconductors, artificial intelligence, robotics and biopharmaceuticals and plans to invest 240 trillion won ($206 billion) in these areas over the next three years.
Group flagship Samsung Electronics aims to overtake TSMC to become No. 1 in chip contract manufacturing by 2030, investing nearly $150 billion in logic chip businesses, including foundries.
Late last month, Samsung selected Taylor, Texas, as the site of a planned $17 billion US chip plant after months of deliberation, which coincided with Lee’s first business trip to the United States in five years.
Shares of Samsung Electronics gained 1.6%, compared to a 0.4% gain in the broader market.
The sweeping move is the latest sign of centralized transformation at the world’s largest memory chip and smartphone maker, after Vice Chairman Jay Y Lee was paroleed from a bribery conviction in August.
The head of the visual display business, Han Jong-hee, was promoted to vice president and co-CEO, and will head the newly merged division to lead the mobile and consumer electronics as well as TV business.
Han has risen through the ranks in Samsung’s visual display business, without experience in mobile. Analysts said it was unclear what kind of changes or division of labor is expected under Han.
Kyung Kee-hyun, CEO samsung Electro-Mechanics, was named co-CEO of Samsung Electronics and will head the chip and components division.
The newly merged businesses differ in size. The mobile business reported 3.36 trillion won ($2.84 billion) in operating profit in the July-September quarter, while consumer electronics’ 760 billion won.
The reshuffle could help Samsung address challenges facing its mobile and consumer electronics businesses, which include better connecting devices to devices on a single platform that captures and keeps customers, analysts at Yunta Securities Korea Lee Jae-eun said.
But more immediate problems are lack of chip supply, rising raw material prices, logistics difficulties, and competition from Apple Inc. and Chinese rivals.
Other high-profile promotions include the naming of Vice Chairman Chung Hyun-ho as head of a “task force”, which analysts said is a central coordinating unit for decision-making at Samsung Electronics and affiliated companies.
“There may be more prompt execution of money or decision making,” said Kim Sun-wooAn analyst at Meritz Securities.
The last time Samsung Electronics named new division heads was in late 2017.
Samsung Group is focusing on areas such as semiconductors, artificial intelligence, robotics and biopharmaceuticals and plans to invest 240 trillion won ($206 billion) in these areas over the next three years.
Group flagship Samsung Electronics aims to overtake TSMC to become No. 1 in chip contract manufacturing by 2030, investing nearly $150 billion in logic chip businesses, including foundries.
Late last month, Samsung selected Taylor, Texas, as the site of a planned $17 billion US chip plant after months of deliberation, which coincided with Lee’s first business trip to the United States in five years.
Shares of Samsung Electronics gained 1.6%, compared to a 0.4% gain in the broader market.
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