With Vice Chairman Jun Young-hyun appointed to lead Samsung Electronics’ semiconductor business, it has become evident that Chairman Lee Jae-yong prefers appointing semiconductor heads after they have proven their management skills in the company’s other electronic affiliates. This approach is receiving mixed reactions both inside and outside Samsung: some appreciate the broader perspective beyond a sole focus on semiconductors, while others worry about missing out on rapidly changing industry trends.
Starting on May 21, Jun took over as head of the device solutions (DS) division. He joined Samsung Electronics in 2000 as an engineer in the memory business division and served as president of that division for three years starting in 2014, before becoming CEO of Samsung SDI, the company’s battery-making affiliate, in 2017.
Jun’s predecessor, President Kyung Kye-hyun, spent 26 years in the memory business division and served as CEO of Samsung Electro-Mechanics for two years just before overseeing the semiconductor business. Similarly, Advisor Kim Ki-nam became head of semiconductors after serving as CEO of Samsung Display in 2013.
All of these leaders, who began as semiconductor engineers, achieved significant management results in electronic affiliates before being promoted to semiconductor CEOs. Under Jun’s leadership, Samsung SDI emerged from a loss-making phase and began seeing success in the medium-to-large battery sector, previously considered a weakness. During his time at Samsung Electro-Mechanics, Kyung led the growth of the automotive multilayer ceramic capacitor (MLCC) business, achieving record-breaking performance. Kim focused on OLED technology development at Samsung Display, securing future growth drivers for the company.
A former Samsung executive noted, “Since the era of Chin Dae-je, who was instrumental in Samsung’s semiconductor success in the 1990s, it’s been a tradition for semiconductor heads to gain diverse experience in various electronic businesses. Recently, this trend has intensified. As internal and external uncertainties grow, broadening leaders’ perspectives has become crucial. For the company, it’s a ‘win-win’ because it allows for proactive evaluation of individual management abilities.”
They added that the electronic components business shares similarities with the semiconductor business in terms of production processes, providing a comprehensive view of the electronics industry. Additionally, experiencing this business offers an opportunity to test potential synergies with the semiconductor business in new areas.
However, concerns exist about institutionalizing this rotation practice, as managing other affiliates could cause leaders to lose touch with the rapidly changing semiconductor industry. A professor with a background in Samsung semiconductors, who wished to remain anonymous, said, “Gaining experience in affiliates and creating synergies in the semiconductor business would be ideal. However, historically, figures like Kim have been criticized for neglecting next-generation semiconductor R&D, such as high-bandwidth memory (HBM). Kyung was criticized for delaying the decision to cut memory production, which increased losses. It’s worth questioning why someone who is successful in next-generation semiconductor technology should be moved to focus on displays or batteries in other affiliates.”
