By Timothy W. Martin and Yang Jie

SEOUL -- The head of Samsung Electronics' smartphone and consumer electronics business died from cardiac arrest on Tuesday, jolting the South Korean technology giant during a business slide that leaders have called a crisis.

Jong-hee Han, 63 years old, had been appointed a co-CEO of Samsung Electronics in December 2021. The firm's other CEO oversees the unit making semiconductors and other tech components.

No immediate replacement for Han was named. A Samsung spokeswoman confirmed Han's death. "Our deepest condolences are with his family and loved ones during this difficult time," the company said.

Samsung makes myriad electronic gadgets and appliances, from smartphones to washing machines to televisions. It is also a major components supplier to other tech companies. But the Suwon, South Korea-based company has stumbled in recent years, as the tech industry has undergone an artificial-intelligence boom.

Rival SK Hynix outmaneuvered Samsung to become the early supplier to Nvidia, providing the niche type of memory needed for AI chips. In 2024, for the second straight year, Apple shipped more smartphones than Samsung, which had long held the No. 1 spot. Taiwan Semiconductor Manufacturing, known as TSMC, has extended its dominance in advanced chipmaking and recently unveiled plans to spend at least $100 billion more in U.S. production.

Spurred by incentives offered by the Biden administration, Samsung said it would invest tens of billions of dollars to expand chip production in Texas. But those bets now can be seen as liabilities, as President Trump rolls back Biden-era policies. Samsung also has a significant production base in Mexico, which now faces a 25% import tariff, prompting the South Korean firm to consider relocating more manufacturing to the U.S.

Samsung Electronics' share price has tumbled about 22% over the past year. That stands in contrast with Apple, SK Hynix and TSMC, which have each surged at least 25%.

The company's circumstances were highlighted in a recent message to executives delivered from Samsung Electronics Chairman Lee Jae-yong. In an education-seminar video, Lee was quoted as saying the company faced a "do-or-die survival" moment. Participants received an engraved plaque that declared Samsung employees are "strong in crisis, good at reversals and fierce in competition."

Han had joined Samsung in 1988. During his 37-year career, he was credited with helping the company become the top player in TVs and other consumer-electronics businesses.

Speaking at the company's annual shareholder meeting last week, Han acknowledged Samsung's struggles and vowed a turnaround. "I sincerely offer an apology to our shareholders for disappointing stock prices," Han said.

Samsung had also issued an apology last fall for falling behind in the AI chip race. It came a few months after the company removed the co-CEO overseeing the semiconductor business. Jun Young-hyun, the current co-CEO, was named in November.

Write to Timothy W. Martin at Timothy.Martin@wsj.com and Yang Jie at jie.yang@wsj.com

(END) Dow Jones Newswires

March 25, 2025 00:13 ET (04:13 GMT)

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