Jun Younghyun, Key Driver of the Memory Business, Expected to Gain Stronger Organizational Control

Greater Scope for Maneuver After Chung Hyunho's Retirement
Jun Expected to Continue Overseeing Memory Business Division
Synergy Anticipated with Park Hakkyu

There is growing analysis both inside and outside the company that the upcoming Samsung Electronics executive reshuffle, expected around the middle of this month, will further strengthen the organizational control of Jun Younghyun, Vice Chairman and Head of the Device Solutions (DS) Division. This is attributed to his significant contributions in restoring both performance and trust in the memory business, as well as the increased scope for maneuver following the recent retirement of Vice Chairman Chung Hyunho.

According to the semiconductor industry on November 10, there is considerable speculation that Samsung Electronics will not appoint a new head of the Memory Business Division in this personnel reshuffle, instead maintaining the current system where Jun concurrently serves in both roles.

Since November last year, Jun has been overseeing the entire DS business while also acting as the head of the Memory Business Division. At that time, the memory business was placed under his direct control as a special assignment, enabling Jun, who possesses both technical understanding and business acumen, to lead decisively. As a result, Samsung Electronics' memory division has shown improved performance in areas such as DRAM and high-bandwidth memory (HBM). However, as the business has not yet moved beyond its early recovery stage, there is cautious speculation that the company will opt for 'stability' by continuing to entrust Jun with the role, rather than taking the 'risk' of appointing a new figure.

Within the DS organization, it is reported that employees have a very high level of trust in Jun. Since taking office in May last year, he has completely overhauled the company's DRAM design and succeeded in finding a breakthrough in the struggling HBM sector. Recent notable achievements in sales and market share have also contributed to his standing. Samsung Electronics secured a deal to supply its fifth-generation HBM (HBM3E) 12-layer products to major client Nvidia just two years after passing quality tests, and aims to begin mass production and supply of next-generation HBM4 in the second quarter of next year. In the third quarter of this year, the DS division posted an operating profit of 7 trillion won. According to market research firm Counterpoint Research, Samsung Electronics recorded sales of $19.4 billion (about 27.67 trillion won) in the overall memory market-including DRAM and NAND flash-in the third quarter of this year, a 25% increase from the previous quarter, regaining the top spot from SK Hynix (24.96 trillion won) after just one quarter.

The executive reshuffle carried out on November 7 also appears to be related to the expansion of Jun's influence. Samsung Electronics has restructured the Business Support Task Force, which had been operating as a temporary organization for eight years, into the Business Support Office and appointed Park Hakkyu as its head. Park is recognized as someone who is well-acquainted with the operations of both the DS and Device Experience (DX) divisions, having served as the head of management support for both. He is also regarded as a strategist within and outside the company. It is expected that Park will oversee strategic matters, while Jun will directly manage technology development and production on the ground.

There is particular speculation that going forward, Jun will boldly request the funds needed for research and development, as well as the budgets required to pursue new businesses. While Samsung Electronics has previously operated with a focus on cost reduction, this personnel reshuffle is expected to mark a shift toward more active investment in R&D.

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