Samsung Electronics Semiconductor, H1 Performance Bonus Up to 75% of Base Salary

Performance Bonuses Soar with Business Recovery
Q1 Turnaround to Profit
'Goal Achievement Incentives' Set at 37.5?75% by Division
75% for MX and VD Divisions Due to New Product Impact
25% Set for Home Appliances

Samsung Electronics' Device Solutions (DS) division, responsible for semiconductors, has set its performance bonus for the first half of this year at up to 75% of the base salary.

Samsung Electronics Headquarters, Suwon-si, Gyeonggi-do [Image source=Yonhap News]

On the afternoon of the 4th, Samsung Electronics announced the 'Target Achievement Incentive (TAI) payment rate' for the first half of this year through its internal network. The payment date is scheduled for the 8th.

TAI is one of Samsung Electronics' performance bonus systems. It is paid once each in the first and second half of the year based on performance, combining evaluations of the affiliated business division and the business unit, with a differential payment of up to 100% of the monthly base salary.

Samsung Electronics' DS division reportedly announced payment rates ranging from 37.5% to 75% of the base salary. The payment rates were set as follows: Memory Business Unit 75%, Foundry Business Unit 37.5%, System LSI 37.5%, and Semiconductor Research Institute 75%.

From 2015 to the first half of 2022, the DS division consistently received the maximum TAI of '100% of the monthly base salary.' However, due to a slowdown in performance starting in the second half of 2022, the payment was halved to 50% in that period. Last year, which experienced an unprecedented semiconductor downturn, the division posted an annual operating loss of about 15 trillion KRW, and in the first half, the Memory Business Unit, Foundry Business Unit, and System LSI all received 25%. In the second half of last year, due to accumulated deficits, TAI was set at 12.5% for Memory and 0% for Foundry and System LSI. This was the lowest ever in the eight years since the TAI system was implemented.

This year, supported by a recovery in the market, the performance bonus amount has significantly increased compared to last year’s 'semiconductor cold wave.' Earlier, Samsung Electronics' DS division achieved sales of 23.14 trillion KRW in the first quarter and recorded an operating profit of 1.91 trillion KRW, marking a return to profitability after five quarters. The securities industry expects the DS division’s sales and operating profit for the second quarter, to be announced on the 5th, to reach approximately 20 trillion KRW and 5 trillion KRW, respectively.

The Device Experience (DX) division announced that the Visual Display (VD) business unit and Mobile Experience (MX) business unit will receive 50% and 75% of the base salary, respectively. This is attributed to strong sales of new TV models and the Galaxy S series. The Home Appliance business unit, which experienced poor performance, reportedly received 25%.