Samsung announces merger of mobile and consumer electronics divisions, names two new CEOs

Samsung Electronics has announced that it is internally merging the mobile and consumer electronics divisions, and has made several changes to leadership.

The company has created a new SET Division that includes mobile, consumer electronics, and TVs. Jong-hee Han, who was head of the Visual Display business, has been promoted to vice chairman and co-CEO, and will lead this newly merged division. Samsung says that he led the company to the top position in TV sales for 15 years running. However, many reports note that he does not have experience in the mobile division.

Kyung Kye-Hyun, CEO of Samsung Electro-Mechanics, was named co-CEO of Samsung Electronics, and is now responsible for leading the all-important chip and components division. He will have to meet the immediate challenges of a global chip shortage, rising raw materials prices, and logistical difficulties.

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The management shakeup streamlines the tech giant’s organisational structure, essentially creating two business for consumer products and components.

Some analysts speculate that the streamlining could help Samsung better integrate hardware and software amid rising competition from Apple and Chinese smartphone makers.

Samsung is also focusing on areas like AI and robotics, and plans to invest $206 billion in these fields over the next three years.