Samsung announced that it will merge its mobile and consumer electronics division and appoint new co-CEOs and other key executives. This is Samsung’s most significant reshuffle since 2017, and the latest changes aim to simplify the structure of the entire business and operation.
The news was reported by Reuters, and it mentions that Samsung wants to simplify its business and operations further to grow its smartphone division and become a class-cleading component and chip manufacturer. Samsung also plans on overtaking TSMC – one of the top chip manufacturers today – by 2030, and the company will invest about $150 billion to do that, according to the company’s latest estimates. Most of the investment will go into developing new components and facilities worldwide to increase production.
In order to achieve all this, Samsung will appoint Hang Jon-see as vice chairman and co-CEO, who will lead the newly merged division. The CEO of Samsung Electro-Mechanics, Kyung Kye-hyun, will also become a co-CEO and help lead the chip and components division. Analysts are withholding all forecasts for the time being, as it’s not yet clear what changes the new co-CEOs will bring to the divisions and to the entire company.
The new reshuffle is expected to help Samsung recover its number one position worldwide. The new co-CEOs are expected to help the company sort out the supply chain issues, and rising raw material prices, logistics, and competition. As consumers, we’re unlikely to see and experience any changes from outside of the company.
Samsung has received tough competition from Chinese manufacturers such as Huawei, OPPO, and its sister companies, Xiaomi, and other tech giants who entered the consumer electronics race. Many of these companies offered at times better hardware and features for less money, which made it harder for Samsung to gain a significant market share in some regions.