Samsung Electronics replaced the head of its semiconductor business, the company’s largest division, as it looks to make up lost ground on rival SK Hynix which attracted high-profile AI customers for its advanced high bandwidth memory (HBM) chips.

Samsung named veteran Jun Young Hyun as head of Device Solutions with the stated aim to “strengthen its competitiveness amid an uncertain global business environment”. He takes over from Kyung Kye-hyun, who will lead the Samsung Advanced Institute of Technology and the future business division.

Jun joined the company in 2000 and worked in DRAM and flash memory development as well as in strategic marketing. He became head of the memory business in 2014 and CEO of battery unit Samsung SDI in 2017.

Samsung reportedly is looking to switch to a new chip manufacturing technique, first used by rival SK Hynix, to increase yields on its HBM chips, placing orders for a new type of advanced chipmaking machinery.

SK Hynix in April teased preparation of the first shipment of its next-generation HBM chip for a customer widely thought to be Nvidia. The Korean chipmaker also unveiled a partnership with Taiwan Semiconductor Manufacturing Company to jointly produce the latest generation of HBM, with mass production of sixth-generation HBM4 technology scheduled to begin in 2026.