Samsung Electronics Semiconductor Division to Pay Up to 100% of Monthly Base Salary as Performance Bonus for First Half

▲ Samsung Electronics Seocho Office Building

The Device Solutions (DS) division, which oversees Samsung Electronics' semiconductor business, will receive a performance bonus of up to 100% of their monthly base salary for the first half of this year.

Samsung Electronics announced the payment rate for the Target Achievement Incentive (TAI) for the first half of the year through its internal network on the afternoon of July 6.

The bonuses are scheduled to be paid on July 8.

The TAI is one of Samsung Electronics' performance-based bonus programs. It is paid twice a year, once in the first half and once in the second half, based on the performance of the respective business division and department, with a maximum payout of 100% of the monthly base salary.

For the Memory Business Division, the TAI has been set at the maximum rate of 100%, continuing from the second half of last year.

This is attributed to significantly improved performance driven by the expansion of HBM (High Bandwidth Memory) supply clients and rising prices for general-purpose DRAM, as the industry entered an unprecedented semiconductor super-cycle early this year.

Securities firms estimate that the Memory Business Division alone generated an operating profit of 14 trillion won in the first half of the year.

There are projections that the annual operating profit for this year could approach 35 trillion won.

Beyond the Memory Business Division, other units within the DS division have also received their TAI rates: 75% for System LSI and Foundry, and 100% for the Semiconductor Research Center, the Samsung Advanced Institute of Technology (SAIT), and common support divisions.

Meanwhile, as the Memory Business Division is expected to maintain strong performance in the second half of the year, there is a high possibility that the TAI for the second half will also be paid at the maximum level.

It is also anticipated that the Overall Performance Incentive (OPI), which is funded by 10% of operating profit, will be paid early next year at the upper limit of up to 50% of annual salary.

In addition, a special management performance bonus, agreed upon during this year's wage negotiations, is also scheduled to be paid.

(Photo: Yonhap News)

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