Samsung Electronics Co. Ltd (KRX:005930) recently made a surprise move and replaced three of its top leaders as well as merged its consumer and mobile electronics segments making them one unit.
This major shake is now leaving the world’s biggest smartphones, TVs, and semiconductors manufacturer in the hands of two new co-Chief Executive Officers. Samsung is looking to compete with the Taiwan Semiconductor Manufacturing Company in the advanced chipmaking space.
Who are the new leaders?
Fifty-eight-year-old, Kyung Kye, will lead Samsung’s powerhouse components business. He has served as Chief Executive Officer for another Samsung affiliate that develops and manufactures other tech parts.
Fifty-nine-year-old Han Jong-Hee, a veteran of the company’s TV business, will be at the helm of the new mobile and consumer electronics single unit.
The three leaders that were replaced had been running the company’s top departments since they were appointed in 2017. The company said on Tuesday that the new additions would help strengthen its business competitiveness and encourage the next phase of its expansion and growth.
Business highlights
The company reported record-breaking quarterly revenue of around $73.98 trillion in its most recent quarter. Samsung’s component division made up almost three-quarters of its operating profit. Consumer and mobile electronic-only accounted for a quarter of this.
Samsung started using multiple-CEO systems in 2013. Back then, the company was dealing with legal battles against the likes of Apple over smartphone patents. All this time, its consumer electronics segment was becoming stronger and stronger.
By separating itself into three different units, the company’s phones and appliances departments could avoid dealing with conflicts of interest with its other components business operations, which Apple has bought and other rival tech companies.
Last month, the company claimed that it was looking to spend around $17 billion on a new advanced chipmaking facility that will be based in Texas.
The post Samsung merges its segments and replaces Chief Executive Officers appeared first on Invezz.
