[News] Samsung Advances Year-End Reshuffle to Tackle Crisis, Device Solutions Division Hit Hardest

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According to the latest report by Yonhap News, Samsung Electronics has informed several senior executives of their dismissal and will commence its year-end personnel reshuffle earlier than usual on November 27.

The report highlights that Samsung’s Device Solutions (DS) Division, which oversees its semiconductor and device solutions business, is the most affected. This comes amid underwhelming performance, prompting expectations of a significant organizational overhaul within the division.

Traditionally, Samsung conducts its executive reshuffle in early December, but this year’s adjustments follow a pattern of being moved forward, as seen last year in late November. This decision reportedly reflects Samsung’s need to address pressing challenges.

Samsung Chairman Lee Jae-yong attended a court hearing on November 25 for the “Samsung C&T and Cheil Industries merger case.” During the proceedings, he acknowledged growing concerns about Samsung’s future, noting that the company is currently facing tougher times than ever before. However, he expressed confidence in Samsung’s ability to overcome these difficulties and move forward.

Financial Struggles and Market Challenges

According to Money DJ, Samsung issued a rare apology to investors in early October after warning that its Q3 net profit would fall below market expectations. The company revealed that delays in AI chip production for a major client had adversely affected its performance. Furthermore, increased supply of traditional-process chips from Chinese competitors further pressured semiconductor margins. Samsung also noted that anticipated sales of HBM3E chips to a key client were postponed beyond its original timeline.

Despite these setbacks, Samsung Memory Division Vice President Kim Jae-jun revealed during the Q3 earnings call on October 31 that production and sales of 8-layer and 12-layer stacked HBM3E chips had begun. Key validation processes for a major client were completed, paving the way for expanded sales in Q4. Industry observers speculate that the major client in question is NVIDIA.

(Photo credit: Samsung)