Samsung Electronics announced a new structure for its memory business with the aim of strengthening its competitiveness. What is the aim of challenging the memory market, which continues to be sluggish, with a two-CEO system?
🟦 Samsung Electronics Announces New CEO Structure to Rebuild Memory Business
Samsung Electronics has introduced a new structure in its core memory business, appointing Jung Young-hyun as CEO and General Manager of the Memory Division. He has a long career as a semiconductor engineer and plans to speed up decision-making through field command. Behind this new structure are delays in the development of HBM, a next-generation memory for generative AI, and a lack of competition with SK Hynix of South Korea, and there is an urgent need to regain market share in the memory market.
In addition, Samsung has changed the CEO from one to two. With the appointment of Mr. Zen, we have established a system to promote the reform of the entire company together with the existing CEO. The CEO is an important role in the position of “number two” after Chairman Lee Jae-yong, the third generation of the founding family and the head of the entire company, and this change can be said to be a major turning point in Samsung’s business policy.
🟦 Issues and aims behind the new structure
Behind Samsung’s bold organizational changes are multiple business issues. In the memory business, our competitiveness in the generative AI market is declining, and we are lagging behind competitors such as SK Hynix and TSMC in Taiwan. In addition, the foundry business continues to lose market share due to widening technology gaps.
In response to these challenges, Samsung has introduced a system under the direct control of the CEO with the aim of innovating and strengthening its market competitiveness. In addition, Han Jin-man was selected as the new leader of the foundry business, and Nam Seok-woo was appointed as the technical manager. In this way, we have built a system that supports rapid decision-making in the field.
🟦 Summary
Samsung Electronics has announced a new leadership structure to address the challenges of its memory and foundry businesses. Jeon Yong-hyun was appointed CEO and General Manager of the Memory Division, and a bold policy change was made to have two CEOs.
There are concerns about the efficiency and on-site confusion of the two-CEO system, but the strong leadership of Chairman Lee Jae-yong, who is the de facto leader, will be the key to curbing the chaos. Rather, it is important to break down the bureaucratized organization and move to a system that can make decisions quickly.
