Samsung to restructure key R&D center

By Kim Yoo-chul

Samsung Electronics plans to scale down its key R&D center in Suwon, Gyeonggi Province, in a divisional shakeup aimed at boosting management efficiency.

Samsung Electronics vice chairman and co-CEO Kwon Oh-hyun told reporters the company would announce a divisional reshuffle next week following the CEO and executive-level reshuffle.

"Samsung needs to be quick to address challenging issues by simplifying its decision-making structure,” said an official from a Samsung technology affiliate.

“The role of the Samsung Advanced Institute of Technology (SAIT) will be scaled down as part of restructuring."

He said that under the restructuring plan, some researchers who were experienced in developing software and other relevant content would be transferred to new jobs.

An SAIT official said management notified him of a new role in Samsung Electronics' handset division.

"Normally, SAIT officials are very competitive given their scope of expertise,” the official said. “Some of them already left the company or offered to quit.”

The reshuffle is part of Samsung’s plan to restructure unprofitable businesses.

"SAIT has long served as the key spot for Samsung, developing patents for advanced technologies,” the SAIT official said. “SAIT will remain as the place to develop patents.”

Also, the divisional shakeup may include creating a chief technology officer position at Samsung Electronics and a further restructuring of its overseas affiliates.

Samsung officials said the company would expand its strategic partnership with overseas clients. Sources said Samsung Electronics would scale down its overseas affiliates.

The reshuffle of its overseas businesses is aimed at increasing the company's presence in the business-to-business market.

IHS Technology senior analyst Daniel Gleeson said this was a "danger" that Samsung and other manufacturers needed to recognize.

"It's something that's not just affecting Samsung," he said. "Samsung has a bit more of a cushion than the others, but it's something that affects all of them because they're being pressured at the top-end from Apple, which has now come out with those larger phones."