Samsung Electronics Co. has introduced personnel and organizational changes to strengthen its competitive edge in new businesses, such as High Bandwidth Memory (HBM), which is gaining attention in the era of generative artificial intelligence (AI).

The company’s strategic reorganization and personnel changes, announced on Monday, are intended to overcome concerns about the worst semiconductor downturn and sluggish demand for IT devices and proactively respond to future markets.

Samsung Electronics recorded poor performance in the first quarter of this year, with operating profit plummeting 95.5 percent to 640.2 billion won ($492 million) compared with the previous year. Analysts anticipate that the second-quarter results will be similar or slightly improve compared with the first quarter.

In relation to the Device Solutions (DS) division, which is responsible for semiconductor business, Samsung Electronics is establishing a new structure for the DRAM development department in the memory business. Hwang Sang-joon, the vice president of strategic marketing for the memory business, will now take on the role of the new head of the DRAM development department.

The DRAM development department is a key organization within Samsung Electronics’ DS division. It is a large-scale organization with a vice president as the head, supported by four executive vice presidents and eleven senior executives, responsible for DRAM design and development. Kyung Kye-hyun, the head of Samsung Electronics Device Solutions Division, and Lee Jung-bae, who heads the memory business, also went through the DRAM development organization.

The importance of the DRAM development department, which plays a crucial role in HBM product development, has become even more significant as the HBM market is expected to grow rapidly from this year onwards with the increasing demand for artificial intelligence and high-performance computing. HBM is a high-value, high-performance memory with multiple DRAMs connected vertically and Samsung Electronics is preparing to mass-produce 4th generation HBM3 products.

Samsung Electronics also reorganized some design departments under the memory business and the foundry business. In the foundry business, Jeong Ki-tae, vice president of technology development, will assume the role of Chief Technology Officer (CTO).

In the Device Experience (DX) division led by Samsung Electronics Vice Chairman Han Jong-hee, there is a notable change in the network business unit. As of July 1, an advanced development team was established under the network business. This dedicated organization aims to secure key advanced technologies in the network field in two to three years. The move is interpreted as a proactive measure to respond to future technology in preparation for the era of 6G.

Samsung Electronics also recruited Lee Jung-joo, a former executive of the global company P&G, to lead the next-generation planning group in the consumer electronics business. The role will involve exploring new device and service business opportunities based on consumer and market data analysis.

By Choi Seung-jin and Minu Kim

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