News: Samsung integrates mobile devices and consumer electronicsâť—

07.12.2021 at 06:00 pm

Samsung said it was merging its mobile and consumer electronics divisions, and appointed new co-CEOs in the biggest reshuffle since 2017 to streamline its structure and focus on its logic chip business.

Two, rather than three, co-CEOs are leading the South Korean company as it focuses on two business pillars: chipsets and consumer devices, including smartphones, to help drive the next phase of growth and enhance competitiveness.

Samsung, whose flagship Galaxy brand has helped it become the world’s largest smartphone maker by volume, is seeking to revive sluggish mobile growth, whose profit contribution shrank to 21% in the last quarter from nearly 70% at its peak in early 2010.

Its components business, led by chips, has become the most profitable, buoyed by the boom in data storage and recent shortages in global semiconductor supply.

The business generated nearly three-quarters of Samsung’s $13.4 billion operating profit last quarter.

Samsung said Han Jong Hee, president of the visual display business, will become its co-CEO. He leads the newly integrated division that includes mobile devices and consumer electronics as well as continuing to lead the television business.

She rose through the ranks in the field of visual displays, without experience in the field of mobile phone.

It is not clear what changes or divisions of work are expected under He. But analysts said the modification could help Samsung tackle challenges such as providing services that connect seamlessly between its smartphones and home devices.

The biggest long-term challenge is building a platform for the company. These companies must continue to increase connectivity between devices. But it has not yet been able to create a permanent platform.

The most pressing problems are chip supply shortages, rising raw material prices, logistical difficulties and competition amid concerns about a slowdown in the mobile phone market.

Samsung announces a big change:

Kyung Ki-Hyun, CEO of electronic component manufacturer Samsung Electro-Mechanics and former leader of the flash memory chip and technology team, has been appointed as the co-CEO to lead the chips and components division.

The reorganization is the latest sign of a central change in the company. This is after Vice Chairman Jay Y. Lee was released in August after being convicted of bribery.

The group focuses on areas from semiconductors, artificial intelligence and robotics to pharmaceuticals. With plans to invest $206 billion in these areas over the next three years.

The pioneering company aims to surpass TSMC to become the No. 1 chip maker by 2030. By investing nearly $150 billion in the logic chip business, including factories.

Written by:

Otto M Yassine

CEO of OTTO Magazine