Gate – Gizmodo

in big reshuffle, Samsung announced on Tuesday plans to combine its mobile phones and consumer electronics businesses in an effort to consolidate its structure on which it will focus chip production.

Along with the news of the restructuring, Samsung also announced the appointment of two CEOs: Kyung Kye-hyun, former head of the chip and flash technology team, will lead the chip and components business, while Han Jong-hee, previously head of the visual display business, will serve as as co-CEO and lead the newly established mobile and consumer electronics arm of the Seoul-based company.

Although Samsung’s mobile device development has stagnated in recent years despite the company’s popularity The Galaxy brand and pioneers in the field of foldable phones, its components – and chips in particular – have seen increased profitability in recent years, accounting for nearly three-quarters of Samsung’s $13.4 billion operating profit in the third quarter. According to Reutersthe company also has big plans to invest resources in semiconductors, artificial intelligence, and robotics, and will pour $206 billion these sectors over the next three years.

Some analysts say the merger also represents Samsung’s best-ever opportunity to fully integrate its services, putting the company in a better position to offer streamlined connections between smartphones and home appliances.

“In the long run, the biggest challenge is to create Samsung’s own platform,” Lee Jae-yun, an analyst at Yuanta Securities Korea, told Reuters. “These companies need to continually increase device connectivity, but so far they have failed to create a sustainable presence platform.”

The news comes just weeks after Samsung announced plans to invest more than $17 billion in a new semiconductor manufacturing facility in Taylor, Texasdoubling down on plans to become the largest contract chipmaker by 2030 amid a global semiconductor shortage partly driven byovid-19 pandemic.

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