[THE VIEW] Samsung Electronics Faces Serious Outflow of Technical Talent

500 Former Samsung Employees Now at Nvidia
Turnover Rate Twice as High as TSMC
Urgent Need for Competitive Compensation and Clear Growth Vision

As the commercialization of artificial intelligence (AI) and the expansion of generative AI services begin, the "chip war" has intensified. With an increasing number of technology companies utilizing AI across various product categories beyond smartphones and graphics cards, semiconductor manufacturers such as Samsung, TSMC, and Nvidia are facing production pressure. Intel, supported by the United States, is making massive investments in foundry (semiconductor contract manufacturing), and joint ventures between Japanese and Taiwanese companies are also active. Japan, having halted related talent development for the past decade and now facing a severe shortage of skilled professionals, is becoming more aggressive in attracting talent. The United States, Japan, Taiwan, and other countries worldwide are targeting Korea's core semiconductor and chip production experts to secure the top position in the industry.

Foreign companies are desperate to attract technical talent. Japan, once known for its closed labor market, is no exception. JASM, a TSMC subsidiary in Japan, is holding briefings in Korea to recruit master's and doctoral-level technical talent and is actively seeking candidates. Taiwan is offering high compensation to retain talent and prevent turnover in its semiconductor industry, which is the economic backbone. They provide high starting salaries to master's and doctoral engineers and steadily increase wages to minimize talent outflow. The United States is also recruiting technical talent by guaranteeing high salaries and stability, especially among AI chip manufacturers. Samsung Electronics has offered engineers bonuses equivalent to about 11 months' salary and provides various welfare benefits such as tuition support for employees' children and meal allowances.

However, despite these efforts, Samsung is already facing a serious problem with the outflow of core talent. Nvidia employs 30,000 people, about 500 of whom are former Samsung Electronics employees. In contrast, Samsung Electronics has only about 270 former Nvidia employees. This is a clear example of the talent movement trend linked to the AI boom. Samsung Electronics' turnover rate is reportedly about twice that of TSMC. Core companies in the AI industry such as Nvidia, TSMC, and Micron consider attracting technical talent essential for growth, which means Samsung's talent outflow is likely to worsen in the future.

With the home appliance industry becoming increasingly difficult to generate profits, talent leaving, and union risks compounding, Samsung is truly in crisis. For technical talent, a compensation system that provides greater guarantees based on individual performance must be rapidly established. It is necessary to follow the examples of global companies that remove rank ceilings and offer exceptional rewards. Many countries and companies desire technical talent. It is no longer an era where patriotism alone can retain talent in Korean companies. A compensation system and growth vision must be presented to prevent the outflow of Korea's capable talent.

Furthermore, not only semiconductor talent but also master's and doctoral-level high-end professionals should be actively recruited to research technologies that will lead future industries. Since technology development takes at least three to five years after investment to yield results, continuous attraction of technical talent, research on new technologies, and creating a virtuous cycle of ongoing technological development are essential. Absorbing and retaining more brains within the organization will determine its success or failure. We look forward to the day when many Korean technical talents abroad want to return to Samsung and work there again.

Kyung Na-kyung, Professor, Department of Computer Science, National University of Singapore