Samsung rejigs leadership of 3 major units, merges mobile and consumer units

share on

twitter /
facebook /
linkedin /
- email
- telegram
- whatsapp
- wechat
- pinterest
- line
- snapchat
- reddit

Samsung Electronics has reshuffled the leadership of its three major business units and formed two new divisions: SET and device solutions (DS). According to multiple media reports including The Wall Street Journal, the SET division was formed through the merger of Samsung’s mobile and consumer electronics divisions.

Han Jong-hee, who was promoted to vice chairman and CEO, will lead the newly merged SET division as he continues to head the visual display business. Having amassed experience in TV research and development and played a major role in Samsung’s growth in TV sales, Han is expected to strengthen the synergies among the different businesses in the SET division and help drive new businesses and technologies.

Meanwhile, Kyung Kye-hyun, who was also named CEO, will lead the DS division. Kyung had been the CEO of Samsung Electro-Mechanics and has experience in semiconductor design. He was previously head of Samsung’s Flash Product and Technology team as well as part of the DRAM Design team.

According to Samsung, the new leadership will help guide the company into its next phase of growth and strengthen its business competitiveness. WSJ said that Samsung had the same three CEOs for mobile (Koh Dong-jin), consumer electronics (Kim Hyun-suk), and electronics components (Kim Ki-nam) since their appointment in 2017. Samsung went back to having a multiple CEO structure in 2013, back when it was involved in a patent litigation with Apple, WSJ said. This was done to avoid a conflict of interest in its components business.

Meanwhile, this latest leadership shuffle shows how the company's profits have evolved over the years. According to WSJ, flat-screen TVs drove financial performance in the early 2000s, followed by smartphones in 2010s. At present, the semiconductor segment is driving growth.

Samsung reported revenue of about US$62.7 billion during the third quarter ended 30 September 2021. This was a 10% increase from a year earlier, which Samsung said was the previous high. Operating profit increased 26% from the previous quarter to about US$13.4 billion, the second-highest ever, as favourable market conditions continued in the memory market while the foundry and display businesses achieved robust sales. The finished product businesses also posted solid performances.

The memory business saw a significant improvement in earnings with record quarterly bit shipment, as well as the second-highest revenue for DRAM, and the foundry business’s results improved due to strong sales to global customers. For the display panel business, earnings rose as major smartphone customers launched new products.

The mobile communications business saw a sequential improvement in earnings on the back of strong demand for new foldable models and low- to mid-range smartphones as well as growth from tablets and wearables. The networks business expanded its global business, including in North America and Japan, and continued to grow 5G network installations in the domestic market.

The consumer electronics division saw strong expansion of the premium TV and bespoke product lineup, but profitability declined due to rising raw materials and logistics costs. For the fourth quarter, Samsung is currently focusing on meeting demand for memory and system semiconductor products even as component shortages at some customers may affect demand.

share on