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Three of Samsung’s business unit executives have been replaced in a surprising move, and two new co-CEOs will oversee the company’s component division and its newly combined mobile and consumer electronics.
Samsung has gone four years without a change of CEO, possibly in part due to the jailing of Lee Jae-yong for charges of bribery. The company’s de facto manager is reportedly required to sign all major decisions, and he was released on parole in August.
According to Wall Street Journal, Samsung has now consolidated the management of its individual devices. Previously, Samsung divided its company into three divisions to avoid conflicts of interest, as it sold components to Apple and other rivals.
Now this component company must remain where Samsung veteran Kyung Kye-hyun takes over. The other two divisions concentrating on mobile such as smartphones and consumer electronics including TVs are to merge.
Han Jong-hee, formerly of Samsung’s TV business, is to run the new joint venture.
That Wall Street Journal says the move reflects the importance of each division for the company. Reportedly, it is the component or semiconductor element that is now most profitable for Samsung.
Separately, Samsung has recently announced that it will make its largest investment in semiconductor manufacturing in the United States. It is building a new plant in Texas that is estimated to cost $ 17 billion.