Samsung Electronics Blends Mobile and Consumer Division
Consumer electronics corporation, Samsung Electronics Co.Ltd., is binding its mobile and consumer electronics division, while placing new co-CEOs, which becomes its biggest reshuffle since 2017, to simplify its structure and focus on growing its logic chip business.
The newly merged division along with the pursuit towards leading the TV business, will now come under the guidance of the head of the visual business, who has risen through the ranks in the company's visual display business without experience in mobile and that is, Han Jong-hee, who is the newly promoted vice chairman and co-CEO.
Then followed by Kyung Kye-hyun, CEO, Samsung Electro-Mechanics, is named co-CEO of Samsung Electronics and will now shoulder the role of leading the chip and components division.
Other high profile promotions include vice-chairman Chung Hyun-ho, who will head the task force, a central coordination unit for decision making in Samsung Electronics and affiliate companies.
There may be more prompt execution of funds or decision-making, says Kim Sun-woo, analyst, Meritz Securities
Samsung Electronics, the company's flagship, plans to invest $150 billion in logic chip companies, including foundries, to overtake TSMC as the leader in chip contract manufacturing by 2030.
After months of debate, Samsung announced late last month that Taylor, Texas will be the site of a proposed $17 billion U.S. chip facility, coinciding with Lee's first business trip to the US in five years.
Samsung Group aims to invest 240 trillion in semiconductors, artificial intelligence, robots, and bio-pharmaceuticals over the next three years.
“There may be more prompt execution of funds or decision-making”, says Kim Sun-woo, analyst, Meritz Securities.
For the company this move can be viewed as representing a centralized change after Vice Chairman Jay Y. Lee was released this year from a bribery conviction.