[Running Toward the Future of Business③] Samsung Chooses Change for 'Customers and Future Growth'

Finalizing Next Year's Organizational Restructuring Plan
Integrating Consumer Electronics and IT Divisions to Provide Optimized Experience
Strengthening System Semiconductors Beyond Memory Semiconductor Leadership

Seoul Samsung Electronics Seocho Building
[Image source=Yonhap News]

[Asia Economy Reporters Heungsun Kim, Hyeyoung Lee, Hyunjin Jung] Samsung Electronics' recently finalized organizational restructuring plan for next year emphasizes ‘customers’ and ‘future growth.’ This aligns with the vision of Vice Chairman Jaeyong Lee’s ‘New Samsung,’ which advocates for "a new Samsung and a better future for neighbors and society."

The keyword highlighted through this restructuring and personnel changes is ‘Customer Experience (CX).’ Among the three core business divisions?semiconductors, home appliances, and mobile?the IT & Mobile (IM) division, which handled consumer electronics (CE) and smartphones, was merged into the set (finished product) division, and the division’s name was changed to ‘DX (Device eXperience).’ Additionally, the wireless business division’s name was changed to ‘MX Division’ for the first time in 26 years.

Along with the division name changes, the new DX division head (Vice Chairman) Jonghee Han established the ‘CX (Consumer eXperience)’ and ‘MDE (Multi Device eXperience)’ centers directly under his organization. This move is a strategic step to provide consumers with new and optimized experiences based on Samsung’s competitive edge in key products such as TVs, home appliances, smartphones, and communication equipment, built through its ‘technology super-gap’ strategy.

The existing Device Solutions (DS) division, which oversees semiconductors and displays, is expected to strengthen its system semiconductor capabilities. A ‘Corporate Planning Team’ was newly established within the Foundry (semiconductor contract manufacturing) division, serving as a control tower overseeing business strategy, customer discovery, and production capacity management.

Samsung Electronics, the world’s No. 1 memory semiconductor company, has set a goal to lead the system semiconductor sector, including foundry, by 2030, committing to an investment of 171 trillion KRW. Last month, it finalized Taylor City, Texas, as the site for a new $20 billion foundry plant in the U.S., and is also constructing a new semiconductor production line (P3) in Pyeongtaek, Gyeonggi Province, South Korea. The P3 line, with an investment of about 50 trillion KRW, is scheduled for completion in the second half of next year.

Earlier, in August, Samsung Electronics identified system semiconductors, bio, next-generation communications, artificial intelligence (AI), and robotics as future core businesses and announced plans to invest 240 trillion KRW over the next three years to strengthen these strategic sectors. In line with this, the existing ‘Robot Commercialization Task Force (TF)’ was elevated to the ‘Robot Business Team’ in the recent restructuring. Furthermore, Vice Chairman Lee, during his U.S. trip last month?the first in five years?met with global executives in bio, telecommunications, and IT sectors to review issues related to future businesses. Samsung Electronics stated, "We also plan to strengthen technology and market leadership through bold mergers and acquisitions (M&A) related to strategic businesses."

Organizational changes to respond to uncertain business environments are also notable. A representative example is the establishment of the ‘China Business Innovation Team’ to solidify the company’s presence in China. This team, overseen by Vice Chairman Han, is expected to enhance the competitiveness of smartphones, which have struggled in China for years, and to oversee consumer electronics and video display (VD) divisions. Additionally, four new organizations were created to address global supply chain issues. An industry insider commented, "In a situation where not only the U.S.-China hegemony struggle but also major countries are restructuring supply chains around their own interests, Samsung appears to have established these organizations to understand the current situation and respond swiftly."

This content was produced with the assistance of AI translation services.