Samsung has merged its mobile business, one of the company's biggest moneymakers, with its consumer electronics division in a major restructuring meant to "strengthen its business competitiveness." In addition, to combining divisions, the tech giant has also replaced all of its CEOs.
Jong-Hee Han, the head of its TV business, has been named as Vice-Chairman and co-CEO of the newly merged mobile and consumer electronics divisions. Han won't be leaving his duties as head of visual display, though, and will instead lead both businesses. According to Reuters, Han has no experience in mobile, but Samsung credits him for playing a key role in the company achieving top position in global TV sales over the past 15 years.
Meanwhile, Samsung President Kyehyun Kyung has also been named co-CEO and will now lead its chip and components division. Kyung is a semiconductor design expert and used to leading the company's flash product and technology team. He's expected to "help maintain" Samsung's semiconductor leadership and conjure innovative ideas at the same time.
While mobile generated the biggest revenue (US$24.2 billion) for Samsung in the third quarter of 2021, its chip business isn't that far behind. Its semiconductor business posted US$22.6 billion in revenue due to the heightened demand for server DRAMs and for computers in general during the pandemic. Samsung is aiming to become the number 1 chip contract manufacturer within the next decade and has poured hundreds of billions into the business. Just this November, it announced that it's building a $17 billion semiconductor factory in Texas to manufacture high-end and advanced chips for smartphones, 5G and artificial intelligence.