Among the chip division's challenges are yield issues with its 3nm process that have prevented Samsung from winning foundry orders, its inability to win HBM3E orders from NVIDIA, and increasing competition from China for legacy DRAM products.
Samsung is serious about turning things around for its chip division
Samsung Electronics has nominated the semiconductor division's head Jun Young-hyun and Chief Technology Officer Song Jai-hyuk for its board of directors. Seoul National University Professor Lee Hyuk-jae has been nominated as an outside director. He's an expert in semiconductor technologies and also heads the university's semiconductor research center.
Jun Young-hyun was appointed as the head of Samsung's semiconductor division in May 2024. November 2024's major organizational shakeup saw Jun Young-hyun also being appointed as co-CEO.
His nomination for the board seat is a clear sign that Samsung views his expertise as vital to the division's turnaround. These nominees will most likely be confirmed at the company's upcoming annual general meeting on March 19.
This is the strongest positioning yet that we've seen from the company regarding its seriousness in navigating the challenges that one of its most profitable divisions faces. With two top-level chip executives and a respected semiconductor academic getting board seats, the top management will have a renewed sense of focus in overcoming these challenges.
