Samsung Elec replaces memory and foundry business heads in sweeping reshuffle
Adds more appointments, background
By Hyunjoo Jin and Heekyong Yang
SEOUL, Nov 27 (Reuters) -Samsung Electronics 005930.KS said on Wednesdayit has named Jun Young-hyun as the new head of its memory chip business and co-CEO of the company, while Han Jin-man will become the head of the foundry business with a promotion to president.
Samsung also named Nam Seok-woo who has been head of chip factory engineering and operations as the Chief Technology Officer of the foundry business.
The major reshuffle of its top rank comes as shares of the tech giant have steadily fallen since August on investor concerns that it is lagging its rivals in supplying high-end chips to Nvidia NVDA.O in the booming AI market.
Jun, the new memory chip head, was brought in to head thesemiconductor division in Mayin what the company said was a move totackle a"chip crisis".
In early October, heapologised for its disappointing performance and said its AI chip business with an unidentified major customer was hit by a delay.
The appointments announced on Wednesday also include a new president of management strategy at the Device Solutions (DS) division.
Park Hark-kyu, president and CFO of Samsung Electronics, will move to the Business Support Task Force, while his successor has not yet been named.
Samsung's semiconductor business suffered a 40% quarter-on-quarter profit plunge in the July-September quarter, as the company has struggled to catch up with rivals TSMC 2330.TW and SK Hynix 000660.KS that posted record third-quarter earnings on the back of the artificial intelligence boom.
Worries about the impact of U.S. tariffs under the impending new administration of U.S. President-elect Donald Trump have also weighed on Samsung shares, which have fallen more than 25% so far this year, making them one of the worst performers among major chipmakers.
In rare public comments, Samsung Electronics Chairman Jay Y. Lee said earlier this week that the company is facing unprecedented challenges.
"I am fully aware that there are grave concerns about the future of Samsung recently," he said during the final hearing of an accounting fraud trial where he is a defendant.
Reporting by Hyunjoo Jin, Heekyong Yang, Hyunsu Yim, Joyce Lee; Writing by Jack Kim;
Editing by Ed Davies
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
