Samsung names new CEOs, merges mobile and consumer electronics divisions

Leadership reorganization at Korean technology giant Samsung will see separate parts of the business combined into the new SET Division, led by newly promoted CEO and Vice President JH Han.

The move is part of a series of campaigns announced today by Samsung, which sees two of its three main verticals – consumer electronics and mobile – fall under a single boss. Meanwhile, President Kyehyun Kyung was simultaneously appointed CEO of his semiconductor unit.

Perhaps Samsung points to an emphasis on future innovation in all three business areas, and Samsung described the top-level transformation as introducing ‘new leadership for the next phase of the company’s future growth and for strengthening the company’s competitiveness.’

Samsung said of the new CEO of Set Division: “JH He is a leading expert in TV research and development and has played a major role in the company achieving the top position in global TV sales for the 15th year in a row He is expected to strengthen the synergies between the various companies in the SET division and help run new businesses and technologies. ”

Elsewhere in management changes, Samsung appointed Yongin Park as president and chief executive of System LSI Business, Hark Kyu Park as president and chief financial officer, Kinam Kim as chairman of the Samsung Advanced Institute of Technology, KS Choi as president and chief executive of the North America SET Division, and Inyup Kang as President and Head of the North America Office for the DS Division.

Aside from references to boost innovation, the details are thin on the ground in terms of what the changes in management and structure mean in relation to Samsung’s major strategy. In fact, it is not even clear what the acronym SET stands for.

The explanation may be related to the fact that the way Samsung makes its money has changed in the last few years. As Reuters points out, its profit contribution from the mobile division fell to 21% last quarter from almost 70% in the early 2010s, while its component business has become the most profitable.

This follows last month’s announcement that Samsung will build a new semiconductor manufacturing facility in Texas, representing the company’s largest US investment of an estimated $ 17 billion. The site is scheduled to be operational in the second half of 2024. Meanwhile, the company had its highest quarterly turnover ever in the 3rd quarter of this year, not a small part thanks to the persistently high demand for semiconductors and especially memory products.

It may be that the move is designed to streamline the corporate structure and focus on this semiconductor growth. It is not clear exactly how the merging of consumer electronics and mobile in one division plays into it, but as details of everything beyond the new job roles are worn out, we are forced to blindly speculate until more information is given.

William

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