Samsung Electronics Co. is gearing up for a major leadership reshuffle within its semiconductor division, targeting the key areas of memory, foundry, and system LSI. This move comes as the South Korean tech giant grapples with mounting challenges, including fierce competition in the rapidly growing AI chip market. According to sources, the announcements are expected as early as Wednesday.
The shake-up, part of Samsung’s annual executive restructuring, has been expedited this year amid disappointing earnings and mounting pressure in the semiconductor market. The company’s foundry business is trailing competitors, next-generation memory products are facing stiff competition from SK Hynix, and emerging Chinese players are undercutting its legacy offerings. Reports suggest the reshuffle includes dismissing senior executives to drive change.
Samsung Electronics’ reshuffle of its semiconductor leadership focuses on its struggling Device Solutions (DS) division, which oversees the chip business. Vice Chairman and CEO Jun Young-hyun will retain his position while key changes are being made in the leadership of memory, foundry, and system LSI sectors. Han Jin-man, currently executive vice president of Samsung’s U.S. semiconductor business, is expected to lead the memory unit, particularly emphasizing the high-bandwidth memory (HBM) business.
Meanwhile, Nam Seok-woo, overseeing manufacturing and technology at DS, will likely take charge of the foundry division to address Samsung’s growing gap with Taiwan Semiconductor Manufacturing Co. (TSMC). Choi Jin-hyuk, head of Samsung’s Memory Research Center in the Americas, will be appointed to lead the System LSI business, focusing on Exynos processors and image sensors.
The restructuring comes as Samsung faces significant challenges, particularly in AI chip development, where it lags behind competitors. The reshuffle attempts to improve the DS division’s underwhelming performance and address the increasing pressure from rival chipmakers, including Chinese firms. Sources indicate that senior executives in the DS division have been dismissed, with several managers expected to be replaced. The overhaul will also involve bringing in fresh talent from other divisions to reinvigorate the unit and restore its competitive edge.
The reshuffle was initiated on Monday, with layoffs and replacements targeting top executives within the DS division. Samsung is expected to formally announce the new leadership team as soon as Wednesday. Market watchers speculate that prominent figures, such as CEO Jang Deok-hyun, DS VP Han Jin-man, and Semiconductor Research Institute CTO Song Jae-hyuk, could be moved to different roles or replaced entirely as part of the broader reorganization strategy.
Amid these internal changes, Samsung’s chairman, Lee Jae-yong, acknowledged the challenges faced by the company, noting during a court hearing that the current situation is particularly tough. He expressed confidence that the company would overcome these difficulties. To further address its semiconductor woes, Samsung plans to hold a global strategy meeting in mid-December to align its leadership and chart a path forward in the face of ongoing competition and market downturns.
Han Jong-hee, vice chairman and head of Samsung’s Device eXperience (DX) division, which manages the company’s smartphones and consumer electronics business, will retain his role as CEO. However, he is expected to hand over control of the digital appliances (DA) sector to Moon Jong-seung, the current vice president and head of the DA Development Team.
Chairman Jay Y. Lee has publicly acknowledged Samsung’s ongoing difficulties but remains confident in the company’s ability to navigate through tough times. The leadership overhaul signals the company’s urgency to adapt to an increasingly competitive tech market and prepare for future growth.
