September 19, 2024 – According to a report by ChosunBiz on September 18th, Samsung is gearing up to initiate a reorganization plan for its DS (semiconductor foundry) division before the end of the year. The primary objective of this reorganization is to dismantle departmental silos and address issues such as poor communication and team egoism, which have been plaguing the company.
The report highlights that Samsung is facing stiff competition in the DRAM market, particularly in the HBM and DDR5 segments, where it has lagged behind SK Hynix. Consequently, the upcoming reorganization is expected to be sweeping, aiming to revolutionize the company’s organizational structure.
Citing sources close to the matter, the report reveals that Samsung intends to shift away from its current team-based structure towards a more project-centric model. This shift is designed to enhance collaboration and streamline processes, thereby tackling the problems arising from the fragmented approach of individual departments.
Furthermore, the South Korean tech giant is contemplating a significant reduction in its workforce, with plans to cut up to 30% of its employees. This move comes as the company’s foundry business confronts multiple challenges, including the low yield rate of its 3nm GAA process.
The media outlet also notes that a Samsung spokesperson has acknowledged the existence of a disconnect between the new process development department and the mass production responsibility department. This disconnect has led to frequent and severe issues, often resulting in a blame game over failures.
