Samsung CEO Han Jong-hee passes away amid struggles in AI chip market

Tough times ahead for Samsung after a sudden heart attack at the upper echelons: co-CEO Han Jong-hee (also in charge of Samsung's consumer electronics and mobile devices division) has passed away.

Samsung Electronics said Han Jong-hee, 63, died of a heart attack. He was appointed chief executive officer of the company in 2022.

Han, who was also a board member, passed away in a hospital on Tuesday while receiving treatment for cardiac arrest. Samsung has traditionally operated under a dual-CEO structure, dividing responsibilities between its consumer electronics and semiconductor divisions.

Han had been with Samsung for nearly four decades, spending much of his career shaping its television business. Analysts suggest his absence could have long-term implications for the company's marketing strategies and its efforts to strengthen its home appliance division.

The recently-appointed Samsung boss Jun Young-hyun is now left solely in charge of the tech giant in a moment that can't be described as "easy" for the company. Samsung is trying to improve its struggling chip business while managing trade challenges.

Jun took on the co-CEO role just last week. He was promoted in 2024 to head Samsung's semiconductor division and now stands alone at the helm. Samsung confirmed in a stock exchange filing that he would serve as the sole CEO moving forward, Reuters reports.



As noted above, the world's largest memory chipmaker (that's Samsung) has been grappling with declining earnings and a weakening stock price. It has struggled to keep pace with rivals SK Hynix and TSMC, particularly in advanced memory chips and contract chip manufacturing, where demand has surged due to the AI boom.

In the smartphone market, the company has also lost its long-held leadership position to Apple.

Just last week, at the annual shareholders meeting, the late Han acknowledged the difficulties ahead. He warned investors that 2025 would be a tough year, emphasizing the need for flexibility in adapting to trade policies, including those under US President Donald Trump's administration. Shareholders had voiced concerns over Samsung's inability to capitalize on the AI boom, which contributed to its underwhelming stock performance last year.

Before his passing, Han outlined Samsung's vision for 2025, emphasizing its ambition to lead in mobile AI. Han was a driving force behind the company's collaboration with Google, which resulted in the Galaxy AI suite and features like Circle to Search.

His strategy, known as "Super Gap", focused on strengthening Samsung's existing advantages to widen the gap with competitors. With AI becoming a central focus in the smartphone industry, Han aimed to establish Samsung as the dominant force in the field. His passing leaves a leadership void at a time when the company is pushing aggressively to expand its AI capabilities.

Meanwhile, Samsung continues exploring opportunities beyond its traditional markets. Sources indicate that the company is looking to expand its footprint in the automotive electronics industry to drive future growth. Chairman Jay Y. Lee, currently in China for the China Development Forum, has visited Xiaomi's car factory in Beijing and BYD's headquarters in Shenzhen, according to local reports and social media posts.