Samsung Electronics has announced new leadership for its memory and foundry chip units in a bid to strengthen its position in the rapidly expanding AI chip market, where it is striving to catch up with competitors such as SK Hynix and Taiwan’s TSMC.
The reshuffle, announced on Wednesday, saw Jun Young-hyun appointed as co-CEO and head of Samsung’s memory chip division. Han Jin-man was named president and head of the foundry business, which focuses on manufacturing chips for other companies.
Additionally, Park Hark-kyu, the company’s president and CFO, will transition to the Business Support Task Force under Chairman Jay Y. Lee’s leadership, though Samsung has yet to name a new CFO.
The announcement was met with a 2% drop in Samsung’s stock price as investors expressed concerns over the company’s competitiveness, especially as the company faces policy uncertainties tied to the incoming U.S. administration under President-elect Donald Trump.
Jun, who took control of Samsung’s semiconductor division in May, will now oversee the memory chip business directly, a move Samsung describes as necessary to address what it called a “chip crisis.”
The decision follows a steep 40% drop in profits from the memory division in the last quarter, with delays in delivering AI chips to key clients, including Nvidia (NVDA.O), a major player in the AI sector.
The reshuffle signals Samsung’s commitment to Jun’s strategy for restoring competitiveness in its memory chip business. Jeff Kim, head of research at KB Securities, commented that Jun’s expanded role would allow him to implement his strategy more effectively and stabilize the company’s chip operations.
In addition to Jun’s appointment, Samsung named Nam Seok-woo as chief technology officer of the foundry business, overseeing chip factory engineering and operations. A new president was also appointed to head management strategy within Samsung’s Device Solutions division.
In rare public remarks, Chairman Jay Y. Lee acknowledged the company’s ongoing struggles, noting that Samsung is facing “unprecedented challenges.” Lee, who is currently on trial for accounting fraud—charges he denies—assured stakeholders that he was aware of the concerns surrounding Samsung’s future.
Despite these leadership changes, investor skepticism remains high, with concerns that Samsung is lagging behind rivals in delivering cutting-edge chips for AI applications.
The company’s ability to regain market share and address ongoing challenges in its semiconductor business will likely be closely monitored in the coming months.
