Samsung Needs Semiconductor Innovation... Replacement of Memory and Foundry Technology Heads (Comprehensive)

Vice President-Level Personnel Changes and Organizational Restructuring in Technology Department
Need for Innovation in DRAM and Foundry... HBM Business Challenges
Establishment of Network Business Division to Secure Advanced Technologies

Samsung Electronics' Semiconductor (DS) division, which has been experiencing a deficit streak this year, has taken a breakthrough step by abruptly replacing the heads of memory and foundry technology development. Given the unfavorable business environment this year, the move is interpreted as an effort to revitalize the atmosphere by focusing on securing ultra-competitive technology and product innovation.

The core of the irregular personnel changes and organizational restructuring announced by Samsung Electronics on the 3rd is the unprecedented replacement of semiconductor development heads. Vice President Hwang Sang-jun, who was working as the head of the Memory Business Division's marketing team, was appointed as the new head of the D-RAM Development Office, and Executive Director Yoon Ha-ryong took over the now-vacant marketing team leader position. The D-RAM Development Office was also newly reorganized. The previously separate Design Teams 1 and 2 under the D-RAM Development Office were unified into a single Design Team, with Vice President Oh Tae-young appointed as the head of the Design Team. The groups under the Design Team were subdivided into Design Groups 1, 2, and 3, and while maintaining the existing Advanced Development Team, the team leader position was assigned to Vice President Yoo Chang-sik, who has focused on semiconductor design research.

[Image source=Yonhap News]

In the Foundry Business Division, Jeong Ki-tae, Vice President and head of the Technology Development Office, was newly appointed as Chief Technology Officer (CTO). The successor to the head of the Technology Development Office is Vice President Koo Ja-heum, who was working in the Technology Development Office.

Replacing the heads of the Memory Business Division's D-RAM Development Office and the Foundry Business Division's CTO and Technology Development Office all at the start of the second half in July is being interpreted as a bold personnel move. Samsung Electronics usually conducts regular executive personnel changes and organizational restructuring at the end of the year, but this time, it advanced the vice president-level personnel changes by five months and made changes such as reorganizing or newly establishing detailed organizations.

In the semiconductor industry, Samsung Electronics is seen as strengthening its technology development departments to reinforce its D-RAM and foundry businesses. Given the semiconductor market downturn continuing since last year and the resulting performance deterioration and other difficulties, the company is attempting changes to lay the foundation for ultra-competitive technology. Samsung Electronics' Semiconductor Division posted an operating loss of 4.58 trillion won in the first quarter of this year and is expected to report a deficit in the 3 trillion won range in the second quarter.

Samsung Electronics is facing several challenges in the D-RAM and foundry fields. While it remains the global No. 1 in the D-RAM market, SK Hynix's performance has been prominent recently in high value-added product areas such as High Bandwidth Memory (HBM) and Double Data Rate (DDR)5. In particular, HBM is emerging as a core demand driver for generative artificial intelligence (AI) alongside graphics processing units (GPUs), making future direction setting and business expansion essential. Samsung Electronics has announced plans to launch the latest HBM product, HBMP, in the second half of the year.

Samsung Electronics Pyeongtaek Campus view / Photo by Samsung Electronics

In the foundry market, Samsung Electronics faces the challenge of preparing ultra-competitive technology to catch up with industry leader Taiwan's TSMC. With TSMC's market share exceeding 60% in the first quarter and the gap with Samsung Electronics widening, a plan to narrow this gap is necessary. Last week, Samsung Electronics held 'Samsung Foundry 2023' in Silicon Valley, USA, and concretized the roadmap for mass production of the cutting-edge 2-nanometer (nm; 1 nm = one billionth of a meter) process starting in 2025. Kyung Kye-hyun, President of Samsung Electronics DS Division, stated, "From the 2 nm process, we will be on par with the industry leader (TSMC) [in technology level]," signaling the start of full-scale technology competition.

Meanwhile, in the DX division, which covers mobile and home appliances, an organizational restructuring was carried out to establish an Advanced Development Team under the Network Business Division, which conducts telecommunications equipment business. This also reflects a strong will to develop ultra-competitive technology. It is evaluated that a dedicated organization was established to secure key advanced technologies to enhance competitiveness in the network business field in the future.

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