Around 100 executives from Samsung’s semiconductor division (DS) are set to retire. (Image courtesy of Samsung Electronics)
SEOUL, Nov. 29 (Korea Bizwire) – Samsung Electronics is expected to announce a significant reduction in its executive ranks during its upcoming annual leadership reshuffle scheduled for November 29.
Among the most notable changes, around 100 executives from the semiconductor division (DS) are set to retire—a move that marks an unprecedented level of departures in a single year.
The restructuring follows a reshuffle of the company’s board of directors on November 28, with the focus now turning to a large-scale reduction in the executive team within the DS division, which currently has about 400 executives. Many of those retiring are expected to be veterans from the memory semiconductor business.
The decision to trim the executive ranks comes after criticism from former vice chairman, Jeon Young-hyun, who recently pointed out that the decline in Samsung’s semiconductor competitiveness was linked to communication breakdowns between departments and leaders, as well as unrealistic business plans that exacerbated the company’s challenges.
Samsung’s leadership has acknowledged that its overly large executive team has hindered effective collaboration across departments, particularly in the semiconductor division, where growth during the global IT boom of the pandemic led to an unsustainable increase in management levels.
The restructuring is expected to primarily affect executives in their 50s and 60s, who may look to pursue new career opportunities after their retirement. This raises concerns about the potential for a talent drain, particularly to Chinese semiconductor firms.
In recent years, there has been a growing trend of former engineers from Samsung Electronics and SK hynix joining companies in China, posing risks to intellectual property security.
Industry experts are increasingly wary of this trend, following the arrest of a former Samsung and SK hynix executive, Cho Mo (66), who allegedly transferred critical 20nm DRAM process technology to Chinese firms.
The police have estimated the technology’s economic value at over 4.3 trillion KRW. This has heightened concerns over the potential leak of valuable expertise as more senior executives from Samsung’s semiconductor division retire.
According to an industry source familiar with the situation, Chinese companies, once relying on discreet, small-scale recruitment, are now openly offering salaries several times higher than those in Korea to lure engineers from Samsung and SK hynix.
This marks a significant shift in the recruitment landscape, with semiconductor professionals being increasingly tempted to join Chinese-backed firms, sometimes disguised as foreign entities.
The Korean Semiconductor Industry Association (KSIA) is working with the government to retain these experts in Korea, offering incentives such as roles in academia or patent-related activities. However, KSIA executive director Ahn Ki-hyun noted that it is challenging to prevent engineers, particularly those attracted by high salaries, from accepting lucrative offers abroad.
The reshuffle and the looming talent exodus highlight the growing challenges faced by Samsung’s semiconductor division, which has long been a cornerstone of the company’s global dominance in the tech industry.
Kevin Lee (kevinlee@koreabizwire.com)
