{"id":2205184,"date":"2024-05-21T17:53:25","date_gmt":"2024-05-21T08:53:25","guid":{"rendered":"https:\/\/koreapro.org\/?p=2205184"},"modified":"2024-05-24T11:11:36","modified_gmt":"2024-05-24T02:11:36","slug":"why-samsungs-surprise-semiconductor-shakeup-is-a-high-stakes-gamble","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/05\/why-samsungs-surprise-semiconductor-shakeup-is-a-high-stakes-gamble\/","title":{"rendered":"Why Samsung\u2019s surprise semiconductor shakeup is a high-stakes gamble"},"content":{"rendered":"
Samsung Electronics, the world\u2019s largest memory chip maker, <\/span>announced<\/span><\/a> a sudden leadership change in its semiconductor division on Tuesday, appointing long-time Samsung executive Jun Young-hyun as the new head of the division.\u00a0<\/span><\/p>\n The move comes as the company aims to strengthen its market competitiveness amid challenges in the global chip industry.<\/span><\/p>\n Jun\u2019s appointment is likely to impact the company\u2019s business strategy, financial performance and ability to adapt to technological shifts, such as the growing demand for AI-focused memory chips.<\/span><\/p>\n But while just replacing the head of the division aims at minimizing disruptions, Samsung Electronics risks falling further behind its competitors if it can\u2019t do enough to improve the fortunes of a core business that has stumbled in recent years.<\/span><\/p>\n FINANCIAL CHALLENGES<\/b><\/p>\n Samsung Electronics has maintained its leadership position in the memory chip market through <\/span>substantial investments<\/span><\/a> in research and development. However, the semiconductor division has recently faced significant challenges.<\/span><\/p>\n In 2022, the division suffered an operating loss of almost $12 billion (<\/span>15 trillion won<\/span><\/a>) due to a downturn in the global chip market and increased competition. The company also <\/span>struggled<\/span><\/a> to keep pace with the growing demand for high-performance AI memory chips, such as high bandwidth memory (HBM) products.<\/span><\/p>\n As a result, the company experienced five consecutive quarters of <\/span>operating losses<\/span><\/a> from the fourth quarter of 2022 to the fourth quarter of 2023.<\/span><\/p>\n To address these challenges and strengthen its market position, Samsung appointed Jun, who brings <\/span>extensive experience<\/span><\/a> in the semiconductor and battery sectors, to his new role.<\/span><\/p>\n He joined Samsung Electronics in 2000 and played a key role in developing <\/span>DRAM and NAND flash memories<\/span><\/a>. In 2017, he took over Samsung SDI, the company\u2019s battery-making subsidiary, helping it become a <\/span>major player<\/span><\/a> in the global market.<\/span><\/p>\n With his track record of success and deep understanding of the industry, Jun is expected to drive innovation and enhance the competitiveness of Samsung Electronics\u2019 semiconductor business.<\/span><\/p>\n