The company on Wednesday appointed Jun Young-hyun as co-CEO with direct oversight of its struggling memory chip business and promoted Han Jin-man to president of its foundry division.
The leadership shuffle comes as Samsung faces critical challenges, including a 40% profit decline in its semiconductor division during the third quarter and concerns about falling behind competitors like SK Hynix and TSMC in AI chip development.
Chairman Jay Y. Lee acknowledged the company’s difficulties, stating he is “fully aware that there are grave concerns about the future of Samsung.”
Investors responded cautiously to the changes, with Samsung’s stock price dropping 3.4%. Analysts remain skeptical about whether the reshuffle will meaningfully address the company’s strategic challenges, particularly its slow entry into the AI chip market and potential complications from protectionist policies under the incoming US administration.
The company claims the restructuring aims to overcome business uncertainty and improve technological competitiveness.
Samsung faces multiple challenges, including slowing profit growth, intensifying competition from Chinese rivals, and the need to establish a stronger position as a supplier to leading AI chip designers like Nvidia.
The latest developments in Samsung showcases how AI capabilities are becoming a critical differentiator for even the world’s largest technology companies.
