Samsung Electronics announced leadership changes on Wednesday, appointing new heads for its memory and foundry chip units.

This move aims to enhance competitiveness in the AI chip market amid falling profits and rising competition.

Jun Young-hyun, Samsung’s semiconductor chief, is now co-CEO with direct control of the memory chip division.

Han Jin-man, formerly head of United States chip operations, becomes president of the foundry business, overseeing customer-designed chips.

Despite these changes, Chung Hyun-ho remains at the head of Samsung’s business support task force, retaining significant decision-making power.

The leadership changes follow a 40% drop in third-quarter profit in Samsung’s semiconductor division.

This decline is attributed to delays in the AI chip business with a major client, believed to be Nvidia. Samsung reports progress in addressing these delays.

Recent Samsung developments