Samsung Electronics Co. is set to dramatically reduce executive positions in its chip division and restructure semiconductor operations as it grapples with intensifying competition in the advanced memory segment. The world’s top memory chipmaker is conducting an audit of its Device Solutions division, which oversees the semiconductor business.
The review, led by Vice Chairman Jun Young-hyun, is expected to result in significant job cuts at the presidential level during the company’s year-end personnel changes. Sources familiar with the matter indicate that Samsung will also streamline its foundry business, which is reportedly losing trillions of won, and reorganize the Semiconductor Research Center responsible for developing future chip technologies.
As of the second quarter, Samsung’s Device Solutions division had 438 executives, accounting for 38% of the company’s total 1,164 executives. This number is more than double that of its rival SK Hynix Inc., which has 199 executives.
The restructuring comes as Samsung faces challenges in competing with rivals like SK Hynix and Micron Technology Inc., particularly in high-bandwidth memory (HBM) chips crucial for AI applications. Samsung is currently the only major chipmaker not supplying the latest HBM3E chips to Nvidia Corp., the world’s leading AI chip designer.
Industry analysts estimate that Samsung’s memory business likely posted an operating profit of 5.5 trillion won (US$4.1 billion) in the third quarter, potentially falling behind SK Hynix for the first time. The company aims to address its weakening competitiveness through this organizational overhaul and executive reshuffle.
