Samsung announces second shake-up of struggling chip business

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Chair Lee Jae-yong has acknowledged ‘grave concerns’ about company’s future for the first time

Samsung Electronics has announced the second management shake-up of its chip division this year, illustrating the turmoil at the South Korean tech giant as it faces growing concern over its technological competitiveness in advanced memory chips used in artificial intelligence hardware.

“I doubt if Samsung can push for reform with this relatively small reshuffle.” But he added: “Jun also serving as the head of the memory business can streamline the decision-making process and may help accelerate tech development.” Prosecutors are seeking a five-year jail term for Lee, as they appeal against his acquittal in February of accounting fraud and stock manipulation relating to the controversial merger of two key affiliates to help cement his control over Samsung Electronics.

 

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