Samsung implements 'shock therapy' to breakthrough memory chip crisis

Samsung Electronics’ sudden replacement of the head of its semiconductor business with Vice Chairman Jun Young-hyun on May 21 signals a heightened awareness of challenges within the company. This off-cycle personnel change, specifically targeting semiconductor leadership, reflects Samsung’s response to the threat posed by SK Hynix in the global memory semiconductor market. Following significant losses in the DS division last year, discussions about replacing its former head, Kyung Kye-hyun, arose but were postponed as the memory semiconductor market rebounded. However, continued delays in supplying Nvidia with the next-generation memory semiconductor, HBM, have reportedly increased internal concerns at Samsung. Discussions indicate that the ongoing delay in Nvidia’s HBM verification process, which is currently underway, was a decisive factor in the personnel change.