The performance bonus for the Device Solutions (DS) Division of Samsung Electronics, which is responsible for the semiconductors business, has been set at a maximum of 25% of the base salary for the first half of this year. This is due to the poor response to high bandwidth memory (HBM) compared to competitors and the retreat in performance caused by the deterioration of the NAND flash market conditions.
According to industry sources on July 4, Samsung Electronics announced the payment rate for the first half of the year’s Target Achievement Incentive (TAI) on its intranet. TAI is paid up to 100% of the monthly base salary once every half year, depending on the performance of each business division.
Samsung Electronics’ DS division will receive 0-25% of the base salary. By business unit, Memory will receive 25%, System LSI 12.5%, Semiconductor Research Center 12.5%, and Foundry (contract manufacturing) 0%. The TAI payment date is July 8. Executives in Samsung Electronics’ DS Division have decided to return their TAI as a gesture of determination to improve management performance.
The DS Division had received the highest 100% of monthly base salary as TAI every time from 2015 to the first half of 2022, but performance bonuses have decreased since the second half of 2022 due to slowing performance. In the second half of 2023, they received the lowest TAI ever with Memory at 12.5% and Foundry and System LSI at 0%, but gradually recovered to 37.5-75% in the first half of last year as market conditions improved. In the second half, they received a performance bonus of 200%, which was above the maximum standard, thanks to the base effect. At that time, 25% was paid to the System LSI and Foundry business units. However, in the first half of this year, the bonus level has significantly decreased due to deteriorating profitability in the NAND flash sector and trillion-won losses in the foundry and system LSI businesses.
In the Device Experience (DX) Division, the Visual Display (VD) and Digital Appliances business units will receive 37.5% and 50%, respectively, while the Mobile Experience (MX) business unit will receive the highest 75% among business units due to strong sales of the Galaxy S25 series launched in the first quarter of this year. The Medical Device business unit will receive 75%, and the Network business unit 50%.
Samsung Electro-Mechanics will pay 100% to the Component business unit and 75% to the Package Solution business. It appears that the Component business unit’s performance bonus reflects the highest sales among all divisions due to the expanded supply of main products such as multi-layer ceramic capacitors (MLCC) for automotive use.
Samsung Display will pay 100% to the small and medium-sized business unit responsible for IT panels, and 75% to the large-sized business unit and headquarters that produce TV panels.
It is reported that Samsung SDI’s Electronic Materials business unit will receive 25%, while both the medium-large and small business units will receive 0%.
