Yesterday On Tuesday, Samsung Electronics announced the replacement of the head of its semiconductor division, appointing a veteran who previously led the memory business, with hopes of catching up to competitor SK Hynix in the AI field.
Former Samsung SDI CEO and senior executive of the memory business, Young Hyun Jun, will succeed Kyung Kye-hyun to lead the DS division. Kyung Kye-hyun will now head Samsung’s Advanced Technology Research Institute and the Future Business Planning team.
Young Hyun Jun joined Samsung Electronics in 2000 and has extensive experience in the semiconductor and battery sectors.
After leading the memory division, he took over Samsung SDI in 2017 and helped the battery division turn profitable by 2020, making it a major player in the global market.
Young Hyun Jun is a key figure in Samsung’s chip and battery businesses reaching global levels, and it is expected that his vast experience will help overcome the semiconductor crisis.
Samsung aims to enhance the competitiveness of its semiconductor division through technological innovation and organizational reforms.
Samsung Electronics’ chip business has been struggling with declining sales in recent years, losing over 15 trillion won last year and recording losses for five consecutive quarters from the fourth quarter of 2022 to the fourth quarter of 2023.
Samsung will formally appoint Young Hyun Jun as CEO and board member at next year’s shareholders’ meeting.
Samsung has fallen behind competitors in the critical memory business.
Currently, SK Hynix is leading in the HBM sector, with explosive demand for such chips due to the rapid rise of AI. SK Hynix’s HBM production capacity for this year is already sold out.
SK Hynix plans to invest $14.6 billion to build a new memory factory to meet the demand for HBM chips, and $4 billion to construct its first advanced packaging plant in Indiana, USA.
Samsung is also actively pursuing global expansion and plans to invest $40 billion in the US over the coming years.
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