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Samsung Electronics has replaced the head of its semiconductor division in a bid to address a "chip crisis" and catch up with rivals in the booming AI chip market.
Young Hyun Jun, formerly the head of the future business planning unit, has been appointed as the new chief, effective immediately.
The move comes as Samsung faces mounting pressure to compete in the high-end chip market, particularly in high bandwidth memory (HBM) chips used in artificial intelligence, where it has fallen behind competitors like SK Hynix.
In a statement, Samsung Electronics said the decision was a "preemptive measure to strengthen future competitiveness by renewing the atmosphere internally and externally."
The company believes Jun's management expertise, gained from his previous roles as CEO of Samsung SDI and executive at Samsung Electronics' memory chip business, will be instrumental in overcoming the current challenges.
Analysts noted that the mid-year replacement of such a high-ranking position is unusual for Samsung, typically reserving major personnel changes for the beginning of the year.
The outgoing chip division chief, Kye Hyun Kyung, will take over Jun's previous role as head of the future business unit.
"The chip division has been lagging in competitiveness on various fronts. It also missed a lot of the global AI upward trend," said analyst Lee Min-hee of BNK Investment & Securities.
The appointment of Jun signals Samsung's determination to regain its footing in the rapidly evolving semiconductor landscape and capitalize on the growing demand for AI-powered technology.
