Samsung to Merge Mobile and Consumer Electronics Divisions, Names Co-CEOs in Biggest Reshuffle in Years


Samsung Electronics 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.

Samsung Electro-Mechanics CEO Kyung Kae-hyun 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 earned KRW 3.36 trillion (about Rs 21,405 crore) in operating profit in the July-September quarter, compared to KRW 760 billion (about Rs 4,840 crore) of consumer electronics.

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. Samsung Electronics and affiliated companies.

“There may be more quick executions for funding or decision making,” said Kim Sun-woo, an analyst at Meritz Securities.

The last time Samsung Electronics named a new CEO was in late 2017.

Samsung Group is focusing on sectors such as semiconductors, artificial intelligence, robotics and biopharmaceuticals and plans to invest KRW 240 trillion (about Rs 15,29,090 crore) in these areas over the next three years.

Group leader Samsung Electronics aims to overtake TSMC To become No. 1 in chip contract manufacturing by 2030 by investing around $150 billion (approximately Rs 11,29,000 crore) in logic chip businesses including foundries.

At the end of last month, Samsung chose Taylor, Texas coincides with Lee’s first business trip to the United States in five years, after months of deliberation, as the site of a planned $17 billion (about Rs 1,27,960 crore) US chip plant.

© Thomson Reuters 2021