Samsung heirs initiate management reorganization

Samsung Electronics reorganized its management for the first time in four years to accelerate its entry into non-memory chips and artificial intelligence.

When the reorganization took place, the group’s third-generation heir, Li Zairong, began to play an active management role four months after taking office. Out of prison.

Lee, who was sentenced to 19 months in jail for bribing former President Park Geun-hye, still faces Allegations of stock manipulation Related to the merger of the two Samsung divisions in 2015 to consolidate his control.

After a high-profile visit to the United States last month, he is expected to travel to the Middle East this week to meet with Samsung’s 5G telecommunications and construction business customers.

After Lee Kuan Yew’s visit, Samsung announced that it would establish a $17 billion chip factory Helping Washington expand US chip production in Texas is a national security priority for the Joe Biden administration.

The reorganization outlined by Lee on Tuesday included the merging of Samsung’s consumer electronics and mobile divisions into Challenge rival Apple, It has a fully integrated equipment series. He promoted Han Jong-hee, head of Samsung’s visual display business, to take charge of the new department.

TV R&D expert Mr. Han has played a key role in maintaining Samsung’s leading position in the global TV market for the past 15 years and has helped the group achieve Explosive sales growth During the coronavirus pandemic.

SK Securities analyst Kim Young-woo said: “As Samsung’s mobile division loses its market share, Lee seems to want to use Han’s TV expertise for mobile services including foldable phones.” “They also hope to integrate devices To create synergy.”

Kyung Kye-hyun, CEO of the subsidiary Samsung Electro-Mechanics, will be in charge of the chip business, which accounts for Nearly two-thirds The company’s operating profit.

Samsung is working hard to strengthen its non-memory chip business as the company is trying to catch up with Taiwanese competitors TSMC In contract chip manufacturing. Non-memory chips are used to process data, such as application processors in smart phones.

Kyung is a memory chip design expert with chip packaging experience. “His design and packaging expertise in chip manufacturing can help Samsung focus on manufacturing new chipsets for artificial intelligence or autonomous driving,” Jin said.

Soon after Lee was released on parole in August, Samsung Group announced a three-year, $206 billion investment plan to expand its business in semiconductors, biopharmaceuticals, artificial intelligence and robotics.

Samsung shares rose 0.66% in early trading on Tuesday, but fell about 15% from their peak in January because investors were concerned that there might be an oversupply of microchips next year and lack of a clear long-term growth strategy.

The company is also facing increasing investor pressure to improve the efficiency of capital allocation because Cash reserves reach $102 billion In the third quarter, it compared its potential large-scale transaction capabilities with the technology investment tool SoftBank’s Vision Fund.

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