Seoul: Samsung Electronics Co.
Ltd.
said on Tuesday it would combine the cellphone electronic division and its consumers and named the new co-CEO in the biggest reshuffle since 2017, to simplify its structure and focus on its logical chip business growth.
The sweeping step was the latest sign of a centralized change in the world’s largest memory chip and smartphone maker, after Deputy Chairman of Jay Y.
Lee was soaked in August from bribery beliefs.
Head of Visual Display Business, Han Jong-Hee, was promoted to Deputy Chair and Co-CEO, and would lead a newly merged division which included cellular electronics and consumers and continued to lead the TV business.
Han has risen through the ranks in the Samsung Visual Display Business, without experience on mobile.
Analyst said it was unclear to change the type or labor division expected under Han.
Kyung Kye-hyun, CEO of Samsung Electro-Mechanics, is named the CEO CEO of Samsung Electronics and will lead the Chip Division and components.
The new business size joins differently.
Cellular business reported 3.36 trillion won ($ 2.84 billion) in operating profit in the July-September quarter, compared to consumer electronics’ 760 billion won.
Reshuffles can help Samsung handle the challenges faced in cellular electronic businesses and consumers, including better connecting devices to equipment on platforms that capture and make customers, Yuanta Securities analyst, Lee Jae-Yun said.
But a more urgent problem is a lack of chip inventory, rising raw material prices, logistical difficulties, and competition from Apple Inc.
and China rivals.
Other high promotion promos include naming as Deputy Chairman of Chung Hyun-ho, Head of “Task Force” which analysts are said to be a central coordination unit for decision making on Samsung Electronics and affiliate companies.
“There may be a faster implementation or decision making,” said Kim Sun-woo, an analyst at Meritz Securities.
The last time Samsung Electronics was named New Division Heads at the end of 2017.
Samsung Group focused on fields such as semiconductors, artificial intelligence, robotics and biopharmacy, and plan to invest 240 trillion won ($ 206 billion) in this field in the next three years.
Flagship Group Samsung Electronics aims to follow the TSMC to become number 1 in making a chip contract in 2030 by investing around $ 150 billion to the logic chip business including casting.
At the end of last month, Samsung chose Taylor, Texas as a place from the US $ 17 billion chip planned after months of deliberations, to coincide with Lee’s first business trip to the United States in five years.
Samsung electronics rose 1.6% compared to a 0.4% increase in a wider market.