Samsung leadership reshuffle comes early as chipmaker seeks to close gap in AI market

Home > Business > Industry

Samsung leadership reshuffle comes early as chipmaker seeks to close gap in AI market

Published: 27 Nov. 2024, 17:13 Updated: 27 Nov. 2024, 17:14

LEE JAE-LIM
[email protected]

Audio report: written by reporters, read by AI

Samsung Electronics' flag at the company's Seocho office building in southern Seoul [YONHAP]

Samsung Electronics expanded the responsibilities of its current chip division head in a leadership reshuffle that was announced Wednesday.

The move underscores the company’s efforts to close the gap in the rapidly advancing AI chip market.

Samsung Vice Chairman Jun Young-hyun, head of Samsung's chip division Device Solutions (DS), was tapped to serve as co-CEO of Samsung Electronics as well as lead the memory business and the Samsung Advanced Institute of Technology.

Samsung Electronics Vice Chairman, co-CEO and chip division head Jun Young-hyun [SAMSUNG ELECTRONICS]

The appointment comes six months after the company initially named Jun to head its struggling chip business.

He will assume the co-CEO position with Vice Chairman Han Jong-hee, who will also oversee a newly-created quality innovation committee.

The annual year-end personnel changes, usually carried out in December, were advanced this year, highlighting the urgency of tackling mounting challenges.

The reshuffle includes two new presidential appointments and role adjustments for seven executives.

“This executive reshuffle aims to tackle uncertain internal and external business conditions while preparing for new growth,” Samsung said in a statement. “Changes include placing the memory division directly under the CEO, appointing a new head for the foundry division and assigning opportunities for new business development to experienced, proven executives."

The chipmaker also established chief technology officer (CTO) and management strategy roles in its contract chip manufacturing business, also known as foundry, and DS divisions, respectively.

Han Jin-man [SAMSUNG ELECTRONICS]

Key appointees in the shake-up include Han Jin-man, who was promoted from executive vice president of the DS division to president. Han will now oversee Samsung's foundry and DS divisions.

Han is described by the company as bringing extensive global experience to the foundry division, having worked on the designs of dynamic random-access memory (DRAM) and NAND flash memory chips, as well as spearheading semiconductor operations in the United States as head of Device Solutions America since 2022.

Kim Yong-kwan [SAMSUNG ELECTRONICS]

Kim Yong-kwan, previously the executive vice president of the business support task force, was appointed president of management strategy within the DS division.

Kim is expected to lead Samsung’s return to chip competitiveness, the company said, with experience in semiconductor planning and finance.

The Suwon, Gyeonggi-based chipmaker has been falling behind in high bandwidth memory (HBM) chips, which are essential for AI processors, trailing crosstown rival SK hynix, who is the main supplier of HBM to Nvidia.

It also faces increasing competition from Chinese companies in the market.

Nam Seok-woo, previously president and head of fabrication engineering and operations, was appointed CTO of the foundry division. Nam is a chip expert who has led process development for all memory products at the Samsung Semiconductor Research Institute and headed the Memory Manufacturing Technology Center and Foundry Manufacturing Technology Center, along with roles in manufacturing and technology at the DS division.

Park Hark-kyu, who previously served as president and head of the corporate management office in the smartphone division Device eXperience, was named president of the business support task force.

The announcement comes two days after Executive Chairman Lee Jae-yong pleaded with the Seoul High Court to grant him the opportunity to focus fully on business matters in his final statement in a trial on stock manipulation.

Prosecutors once again requested a five-year prison sentence in their appeal in the case over the 2015 merger of two Samsung affiliates. A lower court acquitted Lee in February, dismissing 19 charges related to breach of duty and accounting fraud.

Lee acknowledged the growing concerns about Samsung’s future, stating that the company is facing one of the “toughest realities,” but asked the court to grant him “opportunity to overcome such difficulties and transform the company into the Samsung that is beloved by the people.”

BY LEE JAE-LIM [[email protected]]