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| Samsung integrates mobile devices and consumer electronics |
Samsung has announced the merger of its mobile and consumer electronics businesses and appointed a new CEO as part of the largest reorganization since 2017 to streamline its structure and focus on its logic chips business.
The South Korean company is focusing on two business pillars of chips and consumer devices (including smartphones) in order to drive the next phase of growth and improve competitiveness. Therefore, the South Korean company is led by two instead of three co-CEOs. .
Samsung's flagship brand, Galaxy, has helped the company grow into the world's largest smartphone maker by sales and aims to bolster weak cellular growth, with profits contributing from nearly 70% at its peak in early 2010 to 21% in previous quarters.
Driven by the data storage boom and the global shortage of semiconductors, the chip-based components business is becoming the most profitable business.
This business generated nearly three-quarters of Samsung's $13.4 billion operating profit last quarter.
Samsung said Han Jong-hee, head of the visual display division, will become the co-CEO. He will lead the newly incorporated businesses including mobile devices and consumer electronics and will continue to lead the television business.
She rose in the field of visual presentation and had no mobile experience.
It is not yet clear which changes or division of labor will occur under his leadership. However, analysts said the change could help Samsung overcome challenges such as providing services that seamlessly connect between its smartphones and home devices.
The biggest long-term challenge is building a platform for the company. These companies need to increase connectivity between devices. But he still had to create a permanent platform.
The most pressing problems are the scarce supply of chips, high prices of raw materials, logistical difficulties, and competition caused by the weak mobile communications market.
Samsung announces big changes
Kyung Ki-Hyun, CEO of electronics component manufacturer Samsung Electro-Mechanics and former head of the flash memory chip and technology team, has been appointed as the co-CEO to lead the chips and components business.
This reorganization is the latest sign of a fundamental change at work. This came after Vice President Lee Zayong was released after his conviction in August.
The group focuses on areas ranging from semiconductors, artificial intelligence, and robotics to pharmaceuticals. It plans to invest $206 billion in these areas over the next three years.
This pioneering company aims to surpass TSMC to become the largest chip manufacturer by 2030. By investing nearly $150 billion in the logic chip industry including factories.