On December 16, Samsung Electronics held a global strategy meeting to review its business strategy for next year and its mid- to long-term direction. The photo shows Samsung Electronics’ Seocho headquarters in Seoul on the day. (Yonhap)
SEOUL, Dec. 31 (Korea Bizwire) — Samsung Electronics’ semiconductor division is set for a sharp rebound in performance bonuses this year, reflecting a strong recovery in memory chip demand after last year’s industry downturn.
According to industry officials, Samsung Electronics announced internally on Tuesday its projected payout rates for its annual OPI (Over-Performance Incentive) bonuses by business unit. Employees in the company’s Device Solutions (DS) division, which oversees semiconductors, are expected to receive bonuses equal to 43 to 48 percent of their annual salaries — a dramatic increase from last year’s 14 percent.
The improvement follows a strong turnaround in Samsung’s chip business, driven by rising prices for commodity DRAM and expanded shipments of high-bandwidth memory, including its fifth-generation HBM3E products. In 2023, the DS division recorded a loss of 14.88 trillion won amid a global semiconductor slump, resulting in zero bonuses.
Samsung Electronics Executive Chairman Lee Jae-yong inspects the NRD-K cleanroom facility, an advanced integrated semiconductor research and development center at the company’s Giheung campus, on December 22. (Image courtesy of Samsung Electronics)
By contrast, analysts now estimate that operating profit at Samsung’s memory business surged from about 6.35 trillion won in the first half of this year to more than 23 trillion won in the second, putting full-year profit close to 30 trillion won.
The OPI program, paid once a year, allows Samsung to distribute up to 20 percent of excess profits to employees, capped at 50 percent of an individual’s annual salary. Final payout rates will be confirmed in January.
Other semiconductor units also benefited modestly. The foundry business secured its largest-ever contract this year — a 22.8 trillion won chip supply deal with Tesla — while the System LSI division is set to supply next-generation image sensors to Apple.
Samsung’s Mobile Experience (MX) division, buoyed by strong sales of the Galaxy S25 and foldable Galaxy Z series, posted one of the highest projected bonus ranges at 45 to 50 percent, slightly above last year’s 44 percent.
Elsewhere, payouts were more subdued. The Visual Display division, which handles TVs, is expected to receive 9 to 12 percent, down sharply from 27 percent last year.
Home appliances, network equipment and medical devices units were each projected at 9 to 12 percent, roughly in line with last year. Samsung Display’s bonus rate fell to 32 to 36 percent from 40 percent, while Samsung Electro-Mechanics was set at 5 to 7 percent.
The wide divergence in bonus payouts underscores Samsung’s growing reliance on its resurgent semiconductor and premium smartphone businesses, even as other divisions face persistent margin pressure and slower demand.
Kevin Lee (kevinlee@koreabizwire.com)
