Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Samsung names new CEOs, to merge mobile, consumer electronics units

Stock MarketsDec 07, 2021 09:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The logo of Samsung Electronics is seen on a dish washer at its store in Seoul, South Korea, August 27, 2020. REUTERS/Kim Hong-Ji/File Photo 2/2

By Joyce Lee

SEOUL (Reuters) - Samsung Electronics (OTC:SSNLF) Co Ltd will merge its mobile and consumer electronics divisions, the firm said on Tuesday, naming new co-chief executives in the biggest reshuffle since 2017 to simplify its structure and focus on the logic chip business.

Two co-chief executives, instead of three, will lead the South Korean firm as it pivots on the two business pillars of chips and consumer devices, including smartphones, to help lead the next phase of growth and boost competitiveness.

Samsung (KS:005930), whose Galaxy flagship brand helped it become the world's biggest smartphone maker by volume, is seeking to revive slowing mobile growth, whose profit contribution shrank to 21% last quarter from nearly 70% at its peak in early 2010s.

Instead, its component business, led by chips, has become the most profitable, helped by a boom in data storage and a recent shortage of global semiconductor supplies.

The business generated nearly three-quarters of Samsung's 15.8 trillion won ($13.4 billion) operating profit last quarter.

Samsung said Han Jong-hee, the head of visual display business, will become a co-CEO, leading the newly merged division spanning mobile and consumer electronics as well as continuing to lead the television business.

Han has risen through the ranks in Samsung's visual display business, without experience in mobile.

It is not immediately clear what changes or divisions of labour were expected under Han, but analysts said the reshuffle could help Samsung tackle challenges such as offering seamlessly connected services between its smartphones and home appliances.

"In the long term, the biggest challenge is forming a platform of Samsung's own," said Lee Jae-yun, an analyst at Yuanta Securities Korea.

"Those businesses have to keep increasing connectivity between devices, but so far it hasn't been able to create a lasting platform with presence."

More immediate problems are a shortage of chip supplies, rising raw material prices, logistics difficulties, and competition from Apple Inc (NASDAQ:AAPL) and Chinese rivals amid concerns about a slowing mobile market, analysts said.

PROMPT DECISION-MAKING

Kyung Kye-hyun, chief executive of component affiliate Samsung Electro-Mechanics and a former head of the flash memory chip and technology team, was named co-CEO to lead the chip and components division.

Other high-profile promotions included naming as vice chairman Chung Hyun-ho, the head of a "task force" that analysts said co-ordinates decision-making in Samsung Electronics and affiliates, and which media have said works closely with Lee.

The re-organisation is the latest sign of centralised change at Samsung after Vice Chairman Jay Y. Lee was paroled https://www.reuters.com/world/asia-pacific/samsung-leader-jay-y-lee-released-prison-parole-2021-08-13 in August after a bribery conviction.

"There may be more prompt execution of funds or decision-making," said Kim Sun-woo, an analyst at Meritz Securities.

Samsung Electronics last named new division heads in late 2017.

The group is focusing on areas from semiconductors, artificial intelligence and robotics to biopharmaceuticals, with plans to invest 240 trillion won ($206 billion) in these areas over the next three years.

Group flagship Samsung Electronics aims to overtake TSMC to become No. 1 in chip contract manufacturing by 2030 by investing about $150 billion in logic chip businesses, including foundries.

Late last month, Samsung chose the U.S. city of Taylor in Texas for a planned $17-billion chip plant after months of deliberation, coinciding with Lee's first business trip to the United States in five years.

Shares of Samsung Electronics rose 1.6%, outperforming a rise of 0.4% in the benchmark index.

($1=1,176.7300 won)

Samsung names new CEOs, to merge mobile, consumer electronics units
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email