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Samsung shakes up struggling chip business for second time this year

Chair Lee Jae-yong acknowledges ‘grave concerns’ about company’s future for first time

Samsung Electronics has announced the second management shake-up of its chip division this year, illustrating the turmoil at the South Korean tech group as it faces growing concern over its technological competitiveness in advanced memory chips used in artificial intelligence hardware.

Jun Young-hyun, who was installed as head of the semiconductor unit in the previous reshuffle in May and has acknowledged the company’s “chip crisis”, will serve as the new head of its memory chip business and co-chief executive. This gives Jun direct oversight of the memory chip business.

Among other changes, executive vice-president Han Jin-man, previously in charge of Samsung’s US semiconductor business, was promoted to lead its struggling foundry unit, which makes chips for third parties.

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