The company reaffirmed its trust in semiconductor chief Jun Young-hyun by elevating him to the position of co-CEO. This promotion grants him direct oversight of the underperforming memory chip operations, demonstrating Samsung's commitment to improving this crucial business segment.
Additionally, Samsung appointed Han Jin-man, head of its U.S. chip division, as president and leader of its foundry business, which focuses on customer-specific chip designs.
Despite these changes, Samsung retained Chung Hyun-ho, who serves as the second-in-command to Chairman Jay Y. Lee, as the head of its Business Support Task Force, and appointed a former CFO as Chung's deputy. This decision disappointed some analysts who had advocated for a shift in the top decision-making roles, citing previous missteps that hindered Samsung's timely adoption of AI technologies.
Following the leadership changes, Samsung's share price fell by 3.4%, reflecting ongoing concerns about how the technology giant will manage risks associated with the protectionist policies of U.S. President-elect Donald Trump.
Even prior to Trump's election victory, Samsung's stock had been declining due to investor worries that it was falling behind competitors in supplying leading AI chip designer Nvidia.
Jun, who has led the overall semiconductor division since May, will now directly oversee the memory chip business in a move Samsung described as a response to a "chip crisis."
The division's profits plummeted by 40% in the third quarter compared to the previous quarter, with Samsung indicating that its AI chip business faced delays with a "major" customer, which analysts have identified as Nvidia. However, Samsung has since reported progress in this area.
This additional responsibility signals that "Samsung is supporting Jun's strategy to restore its competitive edge," according to Jeff Kim, head of research at KB Securities.
Chung will continue to lead the Business Support Task Force, which is often seen as Lee's unofficial secretariat involved in critical decision-making processes. This raises questions about whether the recent organizational changes will effectively address leadership concerns, according to Park Ju-gun, head of the corporate analysis firm Leaders Index.
Joining the Business Support Task Force is President and CFO Park Hark-kyu, while a new CFO has yet to be appointed.
In addition to addressing challenges in artificial intelligence and reversing a decline in stock prices, management faces the pressures of slowing profit growth and increasing competition from Chinese companies.
"I am fully aware that there are grave concerns about the future of Samsung recently," Chairman Lee stated this week during a concluding hearing of an accounting fraud trial in which he is a defendant, maintaining his innocence.
On Wednesday, Samsung announced several key appointments, including a new Chief Technology Officer for the foundry division and an executive tasked with exploring new growth opportunities.
These strategic moves are part of Samsung's broader plan to address current business challenges, optimize its organizational structure, and strengthen the technological edge of its semiconductor division.