Samsung Electronics Initiates Comprehensive Restructuring, Shutting Down LED Business

October 11, 2024 – Samsung Electronics is reportedly undergoing a comprehensive organizational overhaul centered around its manufacturing sites, with plans to deploy research and development (R&D) personnel from its Device Solutions (DS) division, particularly the Equipment Technology Research Institute, directly into its fabrication plants (FABs).

According to industry sources cited by Korean media outlet Maeil Business Newspaper on the evening of the 10th, the tech giant is seeking to enhance collaboration and communication by integrating R&D teams more closely with production lines. A key aspect of this restructuring involves deploying R&D staff on a daily basis within manufacturing facilities, alongside considerations to delegate personnel evaluation authority to production lines rather than the headquarters.

Furthermore, Samsung Electronics has made the decision to exit the non-core LED business under its DS division, which encompasses LED products for televisions, smartphone flashlights, and automotive headlights. Despite generating annual sales of approximately 2 trillion Korean won, the company has opted to focus on its core competencies.

An industry insider commented, “As Samsung Electronics has grown into a global leader, its organization has become unwieldy, leading to silos between departments and occasionally unclear directions. How the company addresses these issues in the future will determine whether it can regain its fundamental competitiveness.”

On the same day, Samsung Electronics’ stock price fell by 2.32% to 58,800 Korean won, marking a 1-year, 7-month low and prompting some to refer to the company as “50,000 Samsung Electronics” due to the decline.

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