Samsung Electronics has rolled out new heads for memory and foundry chip units. The company is trying to keep up with chipmakers like SK Hynix and Taiwan's TSMC in the global artificial intelligence (AI) chip market. Besides, this decision was taken after Samsung's profit in the chip business fell by 40 percent in the last quarter. This information is known in the report of news agency Reuters.
Shares of South Korea's largest company, Samsung, fell 2 percent in early trading. Despite the sweeping top-level reshuffle, Samsung has done little to ease concerns about increased global competition, the incoming US administration, and policy risks from President-elect Donald Trump.
Samsung has appointed Jun Yong-hyun as co-CEO and new head of memory chip business. In addition, Han Jin-Man has been appointed as company president and head of the foundry business.
President and CFO Park Hak-kyu has been transferred to the business support task force led by the second top official under chairman Jay Y Lee. Samsung has yet to announce a new CFO.
Samsung's share price has been falling gradually since August. Investors worry that Samsung is lagging behind rivals in supplying high-quality chips. Especially over top AI chip designer Nvidia.
June will take direct control of the memory chip. He has been leading Samsung's overall semiconductor division since May. Samsung said this decision was taken to deal with the 'chip crisis'.
Last month, Samsung's division lamented a 40 percent quarterly profit drop. The department said its AI chip business was facing problems due to late deliveries to a 'major' customer.
Jeff Kim, head of research at KB Securities, said the top-level change appears to be 'supporting Samsung's strategy of June to regain its competitive position in the memory chip business.'
June could implement its own strategy by giving more power to the memory chip business. Through this the company will be able to keep pace with the competitors and the situation will be stabilized.
Chairman Lee said this week that Samsung is facing major challenges.
The chairman was present as an accused in the final hearing of the accounting fraud trial. However, he has denied any wrongdoing. In this hearing, he said, 'I am fully aware that there have been serious concerns about the future of Samsung recently.'
Last Wednesday, the head of chip factory engineering and operations named Seok-woo as chief technology officer of the foundry business. Samsung has also appointed a new President of Management Strategy for its Device Solutions division.
