Samsung Electronics has revamped its semiconductor leadership, naming new heads for its memory and foundry chip divisions as it seeks to regain footing in the fiercely competitive AI chip market. The South Korean tech giant, whose shares dropped 2% at market open following the announcement, faces mounting pressure to compete with industry leaders SK Hynix and Taiwan’s TSMC.
The reshuffle introduces Jun Young-hyun as co-CEO and head of the memory chip business, alongside Han Jin-man, who now leads the foundry division as president. Additionally, President and CFO Park Hark-kyu has been reassigned to the Business Support Task Force under Chairman Jay Y. Lee’s close supervision, leaving the CFO position temporarily vacant.
Samsung has faced growing investor concern over its competitive edge. The company’s stock has steadily declined since August, fueled by worries about delays in supplying high-end AI chips to Nvidia, a major customer. Chairman Jay Y. Lee recently acknowledged these challenges, describing them as unprecedented during remarks at an ongoing accounting fraud trial, where he has denied any wrongdoing.
Jun’s appointment as head of the memory chip division reflects Samsung’s effort to address what it calls a “chip crisis.” Last month, Jun publicly apologized for a 40% quarterly profit drop in the division and acknowledged delays in AI chip production for a significant customer. The company has not specified a timeline for resolving these issues.
In a further restructuring move, Nam Seok-woo, previously responsible for chip factory engineering and operations, has been named Chief Technology Officer for the foundry business. Samsung also appointed a new president of management strategy for its Device Solutions division.
The struggle to keep pace with rivals highlights Samsung’s challenges in the booming AI chip sector. The reshuffle signals an urgent effort to stabilize its semiconductor business and navigate uncertainties surrounding the incoming U.S. administration under President-elect Donald Trump, which adds policy risks to the company’s already strained operations.
Samsung’s sweeping leadership overhaul in its semiconductor divisions underscores the urgency of its challenges in the AI chip market, but it raises questions about whether reshuffling executives alone can address systemic issues. The company’s struggle to meet high-end chip demands for clients like Nvidia reflects deeper strategic and operational misalignments. While new leadership could bring fresh perspectives, Samsung’s ability to regain its competitive edge will depend on more than just personnel changes—it requires substantial innovation and agility in an industry where rivals like SK Hynix and TSMC are setting the pace. Investors, already skeptical, will need to see concrete results rather than symbolic gestures to restore confidence in Samsung’s semiconductor trajectory.
Featured image courtesy of MobileSyrup
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