Samsung Electronics has appointed Jun Young-hyun as the new head of its semiconductor business, signaling its commitment to strengthening its position in the competitive artificial intelligence (AI) chips market. Jun’s predecessor, Kyung Kye-hyun, will lead the company’s future business planning team. The move comes as Samsung faces challenges from competitors like SK hynix, the leader in producing high bandwidth memory (HBM) chips crucial for generative AI tools. Samsung’s chip business suffered last year, with a deficit of approximately $11 billion. Kyung admitted that SK hynix had surpassed Samsung in the HBM sector and emphasized the need for radical reform to regain competitiveness.
It is speculated that Samsung took disciplinary action against Kyung due to difficulties in supplying Nvidia, a key buyer of HBM chips. Currently, SK hynix is the sole supplier of HBM chips to Nvidia, which controls 90% of the AI semiconductor market. However, a Samsung Electronics official clarified that the reshuffle was not aimed at penalizing anyone but was a strategic measure to enhance the chip business’s future competitiveness.
Jun Young-hyun brings extensive management experience to his new role. He joined Samsung Electronics in 2000 and has since held various positions, including leading the design team and the DRAM development department. As head of the memory division, Jun played a significant role in the development of fine processes below 20 nanometers. Under his leadership, the operating profit of Samsung’s chip business recovered from approximately $3.5 billion to $11.7 billion, securing the company’s position as a global leader in DRAM and NAND flash.
Jun’s success extends beyond the semiconductor industry. In 2017, he was appointed CEO of Samsung’s battery-making affiliate, Samsung SDI, during a challenging period marked by the Galaxy Note 7 battery ignition issue and a sluggish smartphone market. Jun steered the company toward profitability by shifting its focus to medium-to-large batteries, such as those for energy storage systems and automobiles.
Jun’s expertise and track record make him a valuable asset for Samsung Electronics as it looks for new growth drivers. With his outgoing personality and commitment to meticulous work, Jun is expected to lead the semiconductor business with strategic vision and drive.
Samsung’s decision to appoint Jun Young-hyun reflects its determination to regain competitiveness in the AI chips market. Jun’s vast experience in the semiconductor industry, combined with his success in the battery sector, positions him as a strong leader for the company’s chip division. As Samsung faces fierce competition, this appointment represents a proactive step towards fortifying its chip business and securing its position as a key player in the global semiconductor market.
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