System LSI and Foundry Division 25%
Samsung Electronics has decided to pay 200% of the monthly base salary as a second-half performance bonus to the Memory Business Unit of the Device Solutions (DS) division, which is in charge of semiconductors. Additionally, to celebrate the 50th anniversary of semiconductors, Samsung will provide a 2 million KRW encouragement bonus to all business units within the DS division.
On the 20th, Samsung Electronics announced the payment rate for this year's second-half 'Target Achievement Incentive (TAI)' on its internal network. The payment date is set for the 24th. TAI is Samsung Electronics' performance bonus system, which is paid once each in the first and second half of the year, considering performance, with a maximum of 100% of the monthly base salary.
The Memory Business Unit was recognized for a significant improvement in performance compared to last year, resulting in a TAI rate of 200%, exceeding the system's upper limit. This is the highest figure ever recorded in the DS division. Following this, the Foundry Business Unit and System LSI Business Unit of the DS division were set at 25%, the Semiconductor Research Institute at 37.5%, and SAIT at 37.5%.
The sharp increase in the Memory Business Unit's performance bonus is analyzed to be due to the faster-than-expected recovery in the semiconductor market, leading to improved performance in the memory business. According to the securities industry, although the Memory Business Unit posted a loss of 10 trillion KRW last year, it is expected to record a profit of about 20 trillion KRW this year.
The DS division had always received the maximum '100% of the monthly base salary,' but since the second half of 2022, it has received lower-than-expected performance bonuses due to the semiconductor downturn. The TAI payment rates for all business units, including Memory and Foundry, dropped from 50% in the second half of 2022 to 25% in the first half of last year. In the second half of last year, the Memory Business Unit received 12.5%, and the Foundry and System LSI Business Units received 0%, while in the first half of this year, the Memory Business Unit received 75%, and the Foundry and System LSI Business Units received 37.5%.
Samsung Electronics also announced that the Video Display (VD) Business Unit and Mobile Experience (MX) Business Unit of the Device Experience (DX) division, which handles home appliances and smartphones, will receive 75% of the base salary as a second-half performance bonus this year. This is attributed to strong sales of new TV models and the Galaxy Z series. Additionally, the Network Business Unit and Digital Appliances (DA) Business Unit are reported to have been set at 25% and 37.5%, respectively.
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