Samsung Electronics replaces key executives of chip unit in surprising reshuffle move

Samsung Electronics recently carried out a surprising reshuffle of its executives in the company’s chip development unit. It has replaced some of the key execs due to the low yield that was said to be below the expectation.

Samsung Electronics vice chairman, Jay Y. Lee, heads to the Netherlands to visit Advanced Semiconductor Materials Lithography or ASML Holding NV, a Dutch semiconductor company, shortly after assigning new leaders for Samsung’s chip development division.

ASML is also the leading producer of extreme ultraviolet light (EUV) scanners in the world. This is a crucial material for the production of advanced chips. According to The Korea Economic Daily, Lee’s first stop for his business trip is the Netherlands, and this comes two weeks after the Samsung Group revealed its massive 5-year investment plan where it will be spending KRW450 trillion or around $355 billion for its projects.

Lee’s business trip was scheduled from June 7 to June 18, and he left the company after replacing 10 high-ranking executives in the chip unit. Apparently, the Samsung vice chairman replaced them after holding them accountable for the disappointing yield of its new mobile application processor that is under development.

The said chip has been named “Exynos,” and it was originally meant to be used for Samsung’s Galaxy S22 mobile phone units that were released earlier this year. However, because of the very low production yield, the company was forced to use Qualcomm’s Snapdragon processors instead.

In any case, it was reported that the employee reshuffle was very unexpected, and it involves another 10 personnels aside from the 10 executives. Lee also replaced Samsung Electronics’ flash chip development head and the foundry business chief.

Korea Joongang Daily reported that Samsung Elec confirmed it made changes in its staffing; however, it denied that the reshuffle was due to problems in the business. Rather, the company’s spokesperson said that it was primarily done “to revitalize the business division.

Song Jai Hyuk has been appointed to be the new executive vice president of Samsung’s Semiconductor R&D Center, while the foundry will be headed by EVP Nam Seok Woo. Lastly, Kim Hong Sig will be the new head of the Foundry Technology Innovation Team.