Samsung Electronics has appointed Jun Young-hyun (64), Vice Chairman, as the head of its semiconductor business unit, DS (Device Solutions), in an effort to overcome the challenges facing its DRAM business. This sudden personnel change is seen by industry insiders as Samsung’s move to address the crisis in its DRAM sector, which has struggled to maintain its ‘super-gap’ lead.
Within and outside Samsung, there is a consensus that strong leadership from Vice Chairman Jun is needed to refocus the company’s resources on the semiconductor business. Samsung has failed to anticipate the rapid growth of the High-Bandwidth Memory (HBM) market, a critical component in the AI era, and has lagged in next-generation technology development, allowing SK Hynix to take the lead.
However, some express concern about the risk of appointing someone who has been away from the semiconductor business for seven years to lead it. They argue that the semiconductor market has evolved from the past model of mass production of a few varieties to a landscape requiring quick pivoting, collaboration, and technology development driven by market demand.
A semiconductor expert noted, “The period when Vice Chairman Jun was competitive was when the market was stable with PC, mobile, and server DRAMs. The business structure now is different, focusing more on quick pivots and collaborations. It’s questionable if he is the right person to lead the semiconductor division.”
The appointment of the 64-year-old Jun has also raised questions about the absence of capable young leaders within Samsung. Current executives in Samsung’s semiconductor division include Lee Jung-bae, head of the memory business unit; Choi Si-young, general manager of the foundry business unit; Park Yong-in, head of the System LSI business unit; Song Jae-hyuk, Chief Technology Officer (CTO); and Nam Seok-woo, head of manufacturing.
An industry insider remarked, “Lee Jung-bae is well-regarded for his abilities, but like former President Kyung Kye-hyun, a semiconductor head needs to gain experience and prove their capabilities by being involved in other business areas of the company. To stabilize the currently unsettled atmosphere in the semiconductor business unit, a leader who is well-versed in the Samsung organization and has considerable experience is necessary.”
There are also opinions that Vice Chairman Jun’s extensive experience makes him a suitable leader to stabilize Samsung’s semiconductor organization. Jun, who started his career at LG Semicon (now SK Hynix), joined Samsung Electronics in 2000, working in DRAM and NAND flash development and strategic marketing, and served as the head of the memory business unit from 2014. In 2017, he moved to Samsung SDI and served as its CEO for five years. Last year, he was appointed to the newly established Future Business Planning Team.
Kang Sung-chul, a researcher at the Korean Society of Semiconductor and Display Technology, commented, “Samsung Electronics needs a figure who can aggressively push the business forward in the HBM and DRAM fields and provide stability in times of crisis. Vice Chairman Jun, who has a deep background in DRAM and demonstrated crisis management skills by stabilizing the struggling Samsung SDI, seems to be viewed as the right person to overcome the current crisis.”
