Samsung Electronics has made a number of changes to the executive teams at its memory and foundry chip units, following a disappointing quarter.

According to a report from Reuters, the changes at the top include making Jun Young-hyun, the recently appointed head of Samsung Electronics' semiconductor business, as co-CEO and giving him direct control of the memory chip unit.

Han Jin-man was head of Samsung's US semiconductor business but in the reshuffle has been made president of the global foundry business

However, some analysts have reportedly expressed disappointment that the company’s co-vice chairman Chung Hyun-ho has remained in place and former CFO Park Hark-kyu has been appointed his deputy, as it indicates the company is still too reliant on legacy executives who are unlikely to push for much reform or innovation as outside talent might.

In October 2024, Jun issued an apology after the company released what it labeled disappointing preliminary Q3 2024 results.

In a note addressed to the company’s customers, investors, and employees, the then-vice chairman said Samsung has a history of “challenge, innovation, and overcoming” that will allow it to turn “the serious situation we are currently facing into an opportunity for a leap forward.”

Around the time Samsung’s Q3 results were published, it was also reported that the company was planning to restructure its chip business, in part by cutting the number of executives working in the Device Solutions (DS) division, streamlining its foundry business, and reorganizing the Semiconductor Research Center, the hub responsible for the company’s development of chip technologies.

Despite posting significant profits over successive financial quarters, Samsung has been unable to keep pace with SK Hynix or TSMC, its biggest competitors in the memory chip and contract chip manufacturing markets.

The company has also delayed construction at its fab in Taylor, Texas to upgrade the foundry process at the facility from 4nm to 2nm and allow the company to better compete with TSMC.

Speaking during his trial for accounting fraud, Samsung’s hereditary executive chairman Lee Jae-yong acknowledged the challenges facing the company for the first time, saying “I am fully aware that there are grave concerns about the future of Samsung recently.”

“The reality we are facing is more challenging than ever, but we will overcome the current difficult situation and take a step forward.”

Lee was acquitted of accounting fraud and stock manipulation in February however, prosecutors have appealed the outcome and are seeking a five-year jail term for Lee, who denies any wrongdoing.