Samsung announced the merging of its electronics and consumer divisions on Tuesday, with the purpose of simplifying its structure and concentrating on strengthening its semiconductor chip business.
Samsung, whose Galaxy flagship brand helped it become the world’s largest smartphone manufacturer by volume, is attempting to resurrect flagging mobile growth, which contributed only 21% of profits last quarter, down from over 70% in the early 2010s.
Instead, thanks to a surge in data storage and a recent shortfall of global semiconductor supplies, its component business, led by chips, has become the most profitable.
According to a Reuters article, this was followed by a substantial transition in leadership, with the company’s three primary division leaders being appointed to new co-CEOs, beginning today, December 7th.
Jong-Hee Han, the head of the visual display business, was appointed to vice chairman and co-CEO as part of the new leadership. He has been instrumental in retaining the company’s top position in worldwide TV sales for the past 15 years, and in his new post, he will oversee the newly merged mobile and consumer electronics sector, dubbed the SET division, as well as the visual display business.
As part of his newly appointed position, Kyehyun Kyung, CEO of Samsung Electro-Mechanics, was also promoted to co-CEO and will now manage the company’s device solutions (DS) division, which concentrates on semiconductor and component units.
Samsung also announced plans for a $17 billion US semiconductor facility in Taylor, Texas, in November, as part of a $205 billion investment plan to address rising raw material prices, logistics challenges, and increased rivalry from both China and the United States.
Kinam Kim, the former vice chairman and head of the DS division, has been appointed to the position of chairman of Samsung Advanced Institute of Technology. Hark Kyu Park was named as the company’s new chief financial officer as part of the reorganization.
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