FILE PHOTO: Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, Oct. 23, 2024. REUTERS/Kim Hong-Ji/File PhotoBy Hyunjoo Jin and Heekyong Yang
SEOUL: In a bid to regain its footing in the rapidly expanding AI chip market, Samsung Electronics announced a major overhaul of its leadership team on Wednesday, appointing new heads for its memory and foundry chip units. The South Korean tech giant is scrambling to catch up with its rivals, SK Hynix and Taiwan’s TSMC, which have been making significant strides in the industry.
The company’s shares fell 2% at market open, reflecting investor concerns about Samsung’s competitiveness and the potential risks associated with the incoming U.S. administration of President-elect Donald Trump. The sweeping reshuffle of top executives did little to alleviate these concerns, which have been mounting since August.
In a significant move, Samsung named Jun Young-hyun as its co-CEO and head of its memory chip business, a division that has been facing intense competition from rivals. Jun, who has been heading the overall semiconductor division since May, has been tasked with tackling the "chip crisis" that has been plaguing the company. Last month, he apologized for a 40% on-quarter profit plunge at the division and revealed that the company’s AI chip business with a "major" customer had suffered a delay.
Meanwhile, Han Jin-man has been appointed as company president and head of the foundry business, a key area of focus for Samsung as it seeks to expand its presence in the AI chip market. President and CFO Park Hark-kyu will move to the Business Support Task Force, led by a second-in-command to Chairman Jay Y. Lee. However, the company has yet to announce a new CFO, leaving a key position vacant.
Samsung’s share price has been steadily falling since August, driven by investor concerns that the company is lagging behind its rivals in supplying high-end chips to leading AI chip designer Nvidia. The company’s struggles in this area have been well-documented, and the latest leadership overhaul is seen as a bid to turn things around.
In rare public comments, Chairman Lee acknowledged the challenges facing the company, saying that Samsung is facing unprecedented challenges. "I am fully aware that there are grave concerns about the future of Samsung recently," Lee said during the final hearing of an accounting fraud trial, where he is a defendant. He has denied any wrongdoing.
The latest appointments also included Nam Seok-woo, head of chip factory engineering and operations, as chief technology officer of the foundry business. Additionally, Samsung named a new president of management strategy at its Device Solutions division, rounding out the leadership overhaul.
Published On Nov 27, 2024 at 08:57 AM IST
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