Samsung Electronics is organised into two divisions under a headquarters in Suwon, South Korea: Device eXperience (DX) for TVs, appliances, smartphones and network systems, and Device Solutions (DS) for memory, System LSI chips and the foundry. Two subsidiaries sit alongside them: Samsung Display (SDC) and Harman. Each division has its own CEO: Vice Chairman Young-hyun Jun runs DS and President Tae-moon Roh runs DX, according to the company’s half-year 2026 business report.
The DX Division makes and sells TVs, monitors, appliances, smartphones, tablets, wearables and network systems. The DS Division runs the Memory, System LSI and Foundry businesses. Each division is led by its own CEO, who also sits on the board.
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Businesses inside each division
DX includes the Mobile eXperience (MX) business, which Roh also heads. In DS, Jun is also head of the Memory business. Regional headquarters sit below: 9 for DX and 5 for DS.
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Subsidiaries alongside
Samsung Display, 84.8% owned, makes OLED panels; Harman makes digital cockpits, car audio and consumer audio. In total the company reports 309 subsidiaries worldwide.
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Owners above
Samsung Life Insurance is the largest shareholder with 8.51% of common shares. With Samsung C&T, other affiliates and members of the Lee family, related parties held 19.69% as of 30 June 2026.
What changed in 2025-26
Back to two CEOs
CEO Jong-hee Han left his posts in March 2025. Young-hyun Jun was named CEO that month, and Tae-moon Roh became CEO and head of DX on 28 November 2025, restoring one CEO per division.
Chips now drive the revenue
In the first half of 2026 DS generated KRW 209.2 trillion of revenue, 68.5% of total sales before internal eliminations, against 33% for DX. Samsung reports starting mass shipments of HBM4, its latest high-bandwidth memory.
Buying into new markets
In 2025 Samsung bought FlaktGroup, a central air-conditioning specialist it links to AI data centres, the US digital-health firm Xealth, and, through Harman, Masimo’s Sound United audio unit. In December 2025 it agreed to buy ZF’s ADAS driver-assistance business.
AI in the management structure
The 2026 report lists Roh as head of an AI Innovation Committee, alongside his DX and MX roles, and names on-device AI and Galaxy AI as priorities for the chip and phone businesses.
Samsung Electronics' units in the first half of 2026
DS Division
What it makesDRAM, NAND flash, mobile APs, foundry
Revenue, 1H 2026KRW 209.2 trillion (68.5%)
DX Division
What it makesTVs, appliances, smartphones, network systems
Revenue, 1H 2026KRW 100.7 trillion (33%)
Samsung Display (SDC)
What it makesOLED panels for phones and more
Revenue, 1H 2026KRW 14.2 trillion (4.6%)
Harman
What it makesDigital cockpits, car audio, speakers
Revenue, 1H 2026KRW 8.4 trillion (2.7%)
What it means for you
Investors: read Samsung as two companies under one roof; in 2026 the chip division earns most of the revenue, so memory prices move the whole group.
Do not treat Samsung SDI or Samsung SDS as divisions: they are separately listed associates in which Samsung Electronics holds 19.4% and 22.6%.
Suppliers and partners: deal with the division that owns the product, DX for devices and DS for chips; each has its own CEO and regional headquarters.
Operators: the dual-CEO model splits a capital-heavy chip business from a consumer business; it works when each side has its own decision rights.
Track the business report each half: it is where Samsung discloses leadership changes, subsidiaries and division revenue.
The Business Engineer lens
Samsung’s structure puts a component business that AI servers depend on (memory) and a consumer device business under one listed company with separate CEOs. The Business Engineer reads it as a bet that owning both the silicon and the device gives each side an advantage it could not get alone.
Samsung Electronics uses a divisional structure: the Device eXperience (DX) and Device Solutions (DS) divisions, each with its own CEO, plus the subsidiaries Samsung Display and Harman.
Who is the CEO of Samsung Electronics?
It has two: Vice Chairman Young-hyun Jun heads DS and President Tae-moon Roh heads DX, as of the half-year 2026 business report.
Who owns Samsung Electronics?
It is listed. Samsung Life Insurance is the largest shareholder with 8.51% of common shares; related parties including Samsung C&T and the Lee family held 19.69% as of 30 June 2026.
Are Samsung SDI and Samsung SDS part of Samsung Electronics?
No. They are separate Samsung Group companies; Samsung Electronics holds 19.4% of Samsung SDI and 22.6% of Samsung SDS as associates.
Samsung’s organizational structure positions it across multiple layers of the AI stack: semiconductor manufacturing (competing with TSMC), device distribution , and display technology. The Business Engineer’s AI Map shows Samsung as one of the few companies with both silicon manufacturing AND consumer distribution โ a combination only Google matches at scale.
Samsung has a product-type divisional organizational structure where products determine how resources and business operations are categorized. The main resources around which Samsung’s corporate structure is organized are consumer electronics, IT, and device solutions. In addition, Samsung leadership functions are organized around a few career levels grades, based on experience (assistant, professional, senior professional, and principal professional).
Samsung's organizational structure is a divisional structure organized around major business units including Samsung Electronics, Samsung Heavy Industries, Samsung Life Insurance, and Samsung C&T.
Consumer Electronics
StructureDivisional
Details– Separate divisions for various consumer electronics categories, such as mobile devices, TVs, and home appliances.
Advantages– Focused product development and innovation in each category. – Efficient marketing and distribution for consumer products.
Drawbacks– Potential challenges in coordinating efforts across multiple consumer electronics divisions. – Risk of siloed development and competition among internal teams.
Semiconductors
StructureDivisional
Details– Division dedicated to semiconductor manufacturing and sales.
Advantages– Specialization in semiconductor technology and production. – Competitive advantage in the semiconductor market.
Drawbacks– Potential difficulties in aligning semiconductor developments with other product divisions. – Risk of internal competition for semiconductor resources.
Displays
StructureDivisional
Details– Division focused on manufacturing display panels for various applications.
Advantages– Expertise in display technology and manufacturing. – Efficient supply of display components to various product divisions.
Drawbacks– Challenges in coordinating display technology advancements with product development in other divisions. – Risk of resource conflicts related to display production.
Research and Development
StructureFunctional
Details– Functional teams responsible for research and product development. Functional managers oversee R&D activities.
Advantages– Focused innovation and technology development. – Efficient product research and development processes.
Drawbacks– Potential disconnect between R&D efforts and market needs. – Challenges in translating research into market-ready products.
Marketing and Sales
StructureFunctional
Details– Functional departments for marketing and sales across product categories. Functional managers lead these departments.
Advantages– Specialization in marketing and sales strategies. – Efficient customer engagement and businessgrowth.
Drawbacks– Potential misalignment between marketing/sales and product development. – Limited agility in responding to market changes.
Corporate Functions
StructureFunctional
Details– Functional departments for finance, HR, legal, and IT services. Functional managers oversee corporate functions.
Advantages– Expertise in corporate support services. – Efficient handling of financial, legal, and HR matters.
Drawbacks– Limited integration between corporate functions and product development. – Potential misalignment with operational needs.
IT and Software Development
StructureMatrix
Details– Cross-functional teams with members reporting to both product leaders and functional managers (e.g., IT and software).
Advantages– Enhanced collaboration between IT, software, and product development. – Efficient utilization of IT resources.
Drawbacks– Potential conflicts and complexity due to dual reporting structures. – Challenges in resource allocation and decision-making.
Samsungโs entire corporate structure revolves around products and is cemented at the company headquarters in South Korea, a country where it employs over 280,000 people.
The company has several divisions based on product category, with each division comprised of multiple business segments. These include:
Consumer electronics โ visual display, digital appliances, printing solutions, health and medical equipment.
IT & mobile communications โ mobile communications and networks, with Samsung the industry leader in developing an end-to-end product portfolio for 5G commercial services.
Device solutions โ memory and system LSI (large-scale integration) with a particular focus on semiconductor design. However, system LSI also encompasses multimedia card controllers, wireless LANs, and display drivers.
Each division provides a specific context in which resources, production, distribution, and sales operate. Each division is also focused on innovation that remains central to Samsung’s vision and mission.
Research and development
Samsung also has a non-product division based on research and development with a network of more than 10,000 personnel around the world. Core priorities include artificial intelligence, robotics, life care & new experiences, security, and next-generation media.
Samsung’s conglomerate structure spans chips to phones to ships. Business Engineer members access 700+ analyses like this plus AI tools to compare organizational models across industries.
Despite a predominant divisional organizational structure, Samsung retains a somewhat centralized hierarchical leadership structure. As noted earlier, the corporate headquarters in South Korea is responsible for unifying the company and driving it forward. Instruction is sent down the line to executives in each division and so forth.
However, in recent years, the company has started to move away from aspects of the hierarchical structure toward a meritocratic structure where power is held by individuals who have earned it.
Samsung now has four career level grades
CL1 โ assistant.
CL2 โ professional.
CL3 โ senior professional.
CL4 โ principal professional.
Before the initiatives came into effect, an employee was required to spend eight years at one grade before progressing to the next. As of 2019, the minimum period requirement was replaced with specific tests that would enable superior performers to move through the levels more easily.
To simplify its organizational structure, Samsung also combined the executive vice president and senior vice president roles into one position. The company also actively discourages employees from referring to colleagues by job title via removing markers of rank such as employee ID numbers. If nothing else, these initiatives provide a corporate culture more befitting of a meritocratic organizational structure.
Comparison with Top Related Companies
Apple: Like Samsung, Apple also uses a product-based divisional structure, but it is more streamlined. Apple’s structure is centered around its product lines such as iPhones, iPads, and Macs, similar to Samsung. However, Apple tends to centralize its operations more tightly around its headquarters in Cupertino, focusing intensely on design and innovation.
Google (Alphabet Inc.): Google employs a hybrid organizational structure combining elements of a functional structure with a divisional one based on projects or products. This structure is characterized by a degree of fluidity, enabling Google to be flexible in its project management and innovation efforts. Google’s structure allows for more collaboration across different groups compared to Samsung’s more siloed divisional approach.
Microsoft: Microsoft uses a matrix organizational structure, which is more complex than Samsung’s divisional approach. It integrates functional and product-based divisions, aiming to leverage the benefits of both. This approach helps Microsoft in resource allocation and fosters inter-departmental cooperation, contrasting with Samsungโs more segmented approach.
Similarities and Differences
Similarities: All these companies utilize a divisional element in their structures, which helps in managing a wide range of products and services efficiently. They all emphasize innovation and adapt their structures to support technological development and market expansion.
Differences: Samsung’s divisional structure tends to be more rigid compared to Googleโs flexible, project-based approach. Unlike Apple, Samsung has a broader diversification in products, necessitating a more segmented structure. Microsoftโs matrix structure contrasts with Samsungโs by promoting more inter-departmental interaction and less clear divisional boundaries.
Implications
Responsiveness to Market Changes: Samsung’s divisional structure allows for specialized units that can react quickly to changes in specific product markets, though it may lag in company-wide innovation compared to a more integrated structure like Googleโs.
Innovation and Cooperation: Microsoft and Google might benefit from greater innovation through cooperative practices across different functions and divisions, something that Samsung’s siloed approach might inhibit.
Centralization vs. Decentralization: Appleโs centralized approach can lead to more cohesive branding and product alignment but might reduce responsiveness in diverse markets where Samsung operates.
Key takeaways
Samsung has a product-type divisional organizational structure where products determine how resources and business operations are categorized.
Samsung consists of three product divisions: consumer electronics, IT & mobile communications, and device solutions. Each division has multiple business segments that, in combination with a standalone research and development division, help Samsung carry out its vision and mission.
In recent years, Samsung has moved away from a hierarchical management structure to one that associates employee rank with performance. Under this so-called meritocracy, employees can progress through various positions unencumbered by arbitrary wait periods. The company has also streamlined executive positions and improved corporate culture by discouraging employees by referring to each other based on job title.
Key Highlights
Product-Type Divisional Structure: Samsung’s organizational structure is built around a product-type divisional structure, where the company’s products dictate how resources and business operations are organized.
Divisional Composition: Samsung has three main product divisions:
Consumer Electronics: Covers visual displays, digital appliances, printing solutions, and health/medical equipment.
IT & Mobile Communications: Focuses on mobile communications, networks, and leading the industry in 5G product portfolio development.
Device Solutions: Encompasses memory and system LSI, including semiconductor design, multimedia card controllers, wireless LANs, and display drivers.
Research and Development Division: Samsung has a separate research and development division that works on various priorities such as artificial intelligence, robotics, life care & new experiences, security, and next-generation media.
Centralized and Meritocratic Leadership: Samsung’s leadership structure is somewhat centralized, with headquarters in South Korea playing a significant role in driving the company’s direction. However, the company is moving towards a meritocratic structure, where power is earned based on performance and employees can progress through different positions without arbitrary wait periods.
Career Level Grades: Samsung’s career level grades include Assistant (CL1), Professional (CL2), Senior Professional (CL3), and Principal Professional (CL4). The company has shifted from a time-based progression to a system where superior performers can move through levels more easily through specific tests.
Streamlined Executive Positions: The company has merged executive vice president and senior vice president roles into one position, simplifying its executive structure.
Corporate Culture Changes: Samsung is actively working to improve its corporate culture by discouraging employees from using job titles to refer to colleagues. This aligns with the move toward a more meritocratic structure.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
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