Samsung Merges Mobile Devices and Consumer Electronics Divisions
Samsung Electronics is merging its consumer electronics business and its mobile business. These two divisions together form the new SET Division and a new CEO will be appointed. In addition, there will be a new CEO for DS Division, the division that makes chips and components.
Samsung Electronics says Jong-Hee Han has been promoted to Vice President and CEO and will lead the newly formed SET Division. He also remains the head of the Visual Display Business, the division that makes televisions. According to Samsung, he is an expert in television. Reuters reports that Han has no experience in the field of mobile. The site writes that analysts indicate that it is unclear what changes Han will make.
In addition, Samsung highlights another appointment: Kyehyun Kyung will also become CEO and will lead DS Division, or Device Solutions. According to the company, he is an expert in semiconductor design, which is partly based on the fact that he was previously the head of Flash Product & Technology Team and was part of the DRAM Design Team. Previously, Kyung was the CEO of Samsung Electro-Mechanics.
A total of five other senior appointments have been made. According to Samsung Electronics, this should contribute to future growth and further strengthen the company’s competitiveness. It is the biggest change in the structure in more than three years. This simplification of the structure will probably have to contribute to a higher growth of, among other things, the semiconductor branch. The company is investing heavily in this, as evidenced by the recent announcement to build a $17 billion chip factory in the United States.
At the end of October 2017, Samsung announced the appointment of three new CEOs during the announcement of its quarterly figures. That happened shortly after then-Samsung Electronics CEO Oh-Hyon Kwon unexpectedly announced his departure. This brought in three new leaders for three separate divisions: the components business, consumer electronics, and mobile. That is now reduced to two divisions.
The division that makes smartphones achieved a turnover of 21.3 billion euros in the third quarter of this year. That was the highest turnover figure of all divisions, although the semiconductor part was not far behind with a turnover of 20 billion euros. The consumer branch achieved a turnover of 10.6 billion euros in that quarter.