Exclusive: Samsung considers moving chip researchers into production teams

Samsung Electronics is looking to shake up its chip division to buck a disappointing performance, with researchers possibly moving to production teams.

A Samsung Electronics engineer checks photomasks at a chip factory. [SAMSUNG ELECTRONICS]

Samsung Electronics’ chip division is planning a reorganization and personnel shake-up as the new semiconductor chief experiments with a fresh organizational structure to stimulate the underperforming business.

One possible scenario involves moving a large batch of researchers from the division’s R&D unit to the divisions that deal with chip production. The R&D unit, also known as Samsung Semiconductor Research, is under the chipmaker’s Device Solutions (DS) division and is responsible for conducting pilot studies for next-generation chips.

"A possible option is to transfer about two-thirds of the research work force to production teams so that they can develop chips under production-related teams or divisions,” an engineer from the R&D unit told the Korea JoongAng Daily.

“The reasoning is that latest chips have shown worse-than-expected performances and the production staff had to go over the development process done by researchers,” the source said.

The engineer went on to specify that the remaining researchers will be primarily in charge of researching and developing the high-performing dynamic random access memory range using 14-nanometer manufacturing processes or higher while researchers of the older process will migrate.

A Samsung Electronics spokesperson confirmed that the transfer of researchers remains an option, which was discussed in an internal meeting with executives earlier this week.

“But nothing is decided yet as we keep looking into different ways to improve efficiency,” the spokesperson said, adding that the employees explored other scenarios during the meeting.

Ever since Vice Chairman Jun Young-hyun took the helm of the company's DS division in May, its organizational structure has been undergoing a shift.

For instance, the Advanced Packaging team was dissolved in July, and the members were relocated to the memory chip and foundry businesses.

A team dedicated to developing High Bandwidth Memory (HBM) chips was created the same month under the leadership of Vice President Sohn Young-soo.

HBM is where memory chipmakers are betting big as the advanced memory chip is essential to making high-demand processors by Nvidia.

SK hynix is the primary supplier of HBM to Nvidia, while Samsung Electronics is undergoing a testing process.

Samsung’s chip business generated 14.9 trillion won($11.1 billion) in operating loss last year, hit by the severe chip downcycle and weak HBM capabilities.

BY PARK EUN-JEE, SARAH CHEA [park.eunjee@joongang.co.kr]