Samsung Electronics reportedly starts comprehensive organizational restructuring and will shut down its LED business

On October 11, according to a report by South Korean media Daily Economy on the evening of the 10th, sources in the semiconductor industry said that the DS (Device Solutions) department of Samsung Semiconductor is considering deploying R&D personnel from the Equipment Technology Research Institute and other research and development personnel to the "wafer fabs (FABs)" of various manufacturing facilities.

Samsung Electronics has begun a comprehensive reorganization of its site-centered organization, is promoting a plan to fully deploy R&D personnel to production sites, and has decided to withdraw from the LED business, which has lost its competitiveness.

The core of this organizational reorganization is to strengthen collaboration and communication. In particular, the daily deployment plan between R&D organizations such as the Equipment Technology Research Institute and on-site production lines is becoming a powerful option. It is reported that regarding the allocation of personnel assessment rights, the company is considering handing it over to the production line rather than the headquarters.

Samsung Electronics has decided to withdraw from the non-core field of the DS department - LED business, and has entered the reorganization stage. The LED business team is mainly responsible for LEDs for TVs, LEDs for smartphone flashes, and LED modules for automotive headlights. Although this business can bring in about 2 trillion won (IT Home Note: Currently about 10.514 billion yuan) in sales each year, the company has decided to focus on core areas.

A semiconductor industry insider said: "As Samsung Electronics grew into the world's largest company, its organization became large, which caused divisions between departments and sometimes made it difficult for the company to find a clear direction. How to improve these problems in the future will determine whether Samsung Electronics can restore its fundamental competitiveness."

On that day, due to poor performance, Samsung Electronics' stock price fell 2.32% to 58,800 won (currently about 309 yuan), hitting its lowest point in 1 year and 7 months and was called "50,000 Samsung Electronics."