Samsung Electronics has reshuffled the leadership of its memory and foundry units, two of the three businesses within its Device Solutions (DS) division, in an effort to revive its struggling semiconductor operations. The company appointed DS division Vice Chairman Jun Young-hyun as co-CEO and head of the memory unit. Jun previously led the memory unit for three years starting in 2014, during the tenure of Kwon Oh-hyun, the former vice chairman and CEO of Samsung, who oversaw the semiconductor business.
Jun’s return to the memory unit after a seven-year hiatus has raised eyebrows, with critics questioning whether the move signals a lack of forward-thinking innovation. Detractors argue that the company has opted for a familiar face rather than seeking out a leader capable of reimagining its semiconductor strategy for the AI-driven era.
Samsung announced the reshuffle of nine president-level executives on Nov. 27, describing it as a step to strengthen its semiconductor capabilities and refresh its organizational culture. The company also transitioned the memory unit to report directly to the CEO and replaced the head of the foundry unit. “This reshuffle places proven veterans in leadership roles to spearhead new business ventures,” Samsung said in a statement.
The overhaul comes as Samsung’s semiconductor business faces intensifying challenges. After reporting a loss of 15 trillion won ($11.3 billion) last year, the division has struggled to regain its footing in a rapidly evolving market shaped by surging demand for AI-related technologies.
The memory and foundry units, central to this reshuffle, face mounting pressures. Samsung, once the global leader in memory technology, has lost its dominance in the high-bandwidth memory (HBM) market—a key component for AI applications—to rival SK Hynix. Meanwhile, its foundry unit has grappled with production yield issues in advanced processes, hampering its ability to secure major clients. The unit has consistently reported quarterly losses exceeding 1 trillion won.
To tackle these challenges, Samsung reinstated Jun to lead the memory unit. The company also appointed Han Jin-man, formerly executive vice president of Device Solutions America and a veteran of Samsung’s memory business, to lead the foundry unit. Han, who was promoted to president, has held various roles, including head of the SSD development team and strategic marketing. Since late 2022, he has overseen Samsung’s semiconductor operations in the U.S.
Samsung also created a chief technology officer (CTO) role at the president level within the foundry unit, naming Nam Seok-woo, who previously managed manufacturing and infrastructure in the DS division. Additionally, a new management strategy role for the DS division was established, with Kim Yong-kwan, promoted from vice president of the business support task force, assuming the post.
Despite these changes, some observers argue the reshuffle falls short of delivering the transformational leadership many had anticipated. Critics point to the return of Jun and Han’s appointment, noting their extensive memory-focused careers, as evidence of Samsung’s adherence to a “revolving door” approach in personnel management.
Industry voices have long called for the appointment of leaders specialized in foundry operations, breaking away from Samsung’s practice of assigning memory veterans to helm the foundry unit. Meanwhile, the system LSI division, which continues to struggle with poor performance, remains under the leadership of Park Yong-in, with no changes to address its challenges.
Kim Ki-chan, a professor at The Catholic University of Korea, said the continued reliance on “old hands” reflects Samsung’s idealization of its past successes. “This reshuffle underscores a bureaucratic tendency to rely on familiar leaders, even as the industry demands fresh perspectives,” Kim said. He drew parallels to Sony’s decline in the 1990s, attributing it to an overreliance on past leadership. “Samsung must stop romanticizing its former glory and focus on becoming a truly innovation-driven company.”
Kim Yong-jin, a professor at Sogang University, offered a similar critique. “This reshuffle seems like an attempt to restore past glory by bringing back familiar leaders,” he said. “Without a clear vision and direction from Chairman Lee Jae-yong, Samsung is unlikely to produce groundbreaking appointments.” He likened Samsung’s predicament to the Roman Empire’s decline, which stemmed from a failure to adapt to changing circumstances. “The industry is evolving, yet Samsung is responding with outdated approaches. Only by breaking free from its past narrative can the company achieve meaningful change.”
