Samsung Shakes Leadership, Merges Mobile and Consumer Divisions - Gadgets Price
Samsung Shakes Leadership, Merges Mobile and Consumer Divisions

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Surprisingly, three of the heads of Samsung’s business units have been replaced, and two new co-CEOs will oversee the company’s components division and its newly combined mobile and consumer electronics divisions.

Samsung has been going for four years without switching CEOs, possibly in part because of Lee Jae-yong’s jail term on bribery charges. The de facto leader of the company is reportedly required to sign all major decisions and he was released on parole in August.

According to the Wall Street Journal, Samsung has now consolidated the leadership of its individual units. Previously, Samsung split its company into three divisions to avoid a conflict of interest as it sold components to Apple and other rivals.

Now that parts business has to stay, with Samsung veteran Kyung Kye-hyun taking over. The other two divisions, which concentrate on mobile, such as smartphones, and consumer electronics, including TVs, will merge.

Han Jong-hee, formerly of Samsung’s television company, will lead the new joint division.

The Wall Street Journal says the move reflects the importance of each division to the company. It is reportedly the component or semiconductor element that is now the most profitable for Samsung.

Separately, Samsung recently announced that it will make its largest investment in semiconductor manufacturing in the US. It is the construction of a new facility in Texas, estimated to cost $17 billion.

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