Samsung revealed it will merge the mobile and consumer electronics businesses into one big division and will appoint new co-CEOs. The goal is to simplify its structure and focus on growing the logic chip business. According to Reuters, 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.
Samsung to Merge Mobile and Consumer Electronics Units will Appoint new CEOs
Han Jong-see, the current visual display business (primarily TVs) will be promoted as vice chairman and co-CEO. He will also lead the newly merged division. Analysts are withholding forecasts about what changes will Han bring.
The chip and components division is also seeing changes at its helm. The CEO of Samsung Electro-Mechanics Kyung Kye-hyun will now become the co-CEO and will lead the chip and components division.
Lee Jae-yun, an analyst at Yuanta Securities Korea, said,
“In the long term, the biggest challenge is forming a platform of Samsung’s own. Those businesses have to keep increasing connectivity between devices, but so far it hasn’t been able to create a lasting platform with presence.”
Samsung is aiming to surpass TSMC by 2030 and become the top chip manufacturer. Тhis would cost about $150 billion of investments, according to the company’s estimates, with the sum being primarily used for developing new foundries and facilities.