Samsung Electronics’ New Chip Division Head Sets Vision for Semiconductor Growth

Samsung Electronics’ new head of its chip division, Young Hyun Jun, is urging staff to collaborate in order to reclaim the company’s position as a top semiconductor company. In a letter to employees, Jun expressed his commitment to overcoming challenges in the age of artificial intelligence.

The South Korean tech giant has been trailing behind competitors SK Hynix and Micron Technology in the high bandwidth memory (HBM) chip sector, which is in high demand for AI processors. This setback led to a recent change in leadership, with Jun taking over as the semiconductor chief.

Jun, who previously led Samsung’s memory chip business, highlighted the importance of addressing the challenges posed by the AI era. He emphasized that navigating this landscape could lead to new opportunities for the company.

However, Samsung’s latest HBM chips have reportedly faced difficulties passing tests for use in Nvidia’s AI processors, due to issues related to heat and power consumption. Despite this setback, Samsung refuted claims of failure and stated that testing was progressing as planned.

Investors have taken note of Samsung’s struggles in the semiconductor market, with shares in SK Hynix and Micron surging while Samsung’s stock has seen minimal growth. The company’s semiconductor division reported its largest loss since its inception, with its foundry and system LSI businesses also facing challenges.

In addition to operational hurdles, Samsung’s union has threatened a walkout in demand of more transparent pay policies and increased annual leave.

As Samsung works to navigate the changing semiconductor landscape, Jun’s call for collaboration and innovation will be critical in driving the company’s future success in the AI era.