Samsung revealed that it will merge its mobile and consumer electronics businesses into one big division and will appoint new co-CEOs.
The goal is to simplify its structure and focus on growing the logic chip business, Reuters reported.
Han Jong-See, the current visual display business (primarily TVs) will be promoted to the post of Vice-Chairman and co-CEO, and will also lead the newly merged division.
Analysts are withholding forecasts about what changes Han will bring.
The chip and its components division are also witnessing changes at the helm, with the CEO of Samsung Electro-Mechanics Kyung Kye-Hyun becoming co-CEO and will lead the chip and components division.
Lee Jae-Yun, an analyst at Yuanta Securities Korea, was quoted that the reshuffle may help Samsung deal with issues that it faces both in the world of smartphones and consumer electronics.
The bigger issue, however, is the chip supply, rising prices of raw materials, logistics difficulties, and growing competition from China and the United States.
Samsung intends to surpass TSMC by 2030 and become the top chip manufacturer. This would cost nearly $150 billion worth of investments, as per the company’s estimates, with the sum being primarily used for developing new foundries and facilities.
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