Customers shop at a Samsung mobile store inside a shopping mall in New Delhi.
Reuters | Anindito Mukherjee
Samsung Electronics on Wednesday announced changes in the leadership of its memory and foundry chip divisions, as the company faces intense competition in the semiconductor space.
The South Korean tech giant appointed Jun Young-hyun as co-CEO and head of the memory chip arm, while Han Jin-man will become the president and head of the company’s foundry business.
Shares of the tech giant fell 3%.
The company’s stock has been on a steady decline amid investors worries that it is falling behind competitors such as SK Hynix in building advanced chips.
Last month, Jun, who has been overseeing the semiconductor division since May, issued a rare apology after the company posted disappointing third-quarter profit guidance.
“Samsung appears to be pursuing an operational change while maintaining stability as it has made no significant change in top management, in our view,” Citi analysts wrote in a note following the reshuffle.
“We expect Samsung to overcome business uncertainty through YH Jun’s leadership,” the analysts said.
