Samsung Electronics' Device Solutions (DS) institutional sector will receive a performance bonus equivalent to 200% of the monthly base salary this second half of the year. Along with this, Samsung Electronics will also provide a crisis recovery encouragement fund of 2 million won to all units in the DS institutional sector in celebration of the 50th anniversary of semiconductors.
On the morning of the 20th, Samsung Electronics announced the payment rate for this year’s second half 'Target Achievement Incentive' (TAI) through the company intranet. TAI is one of Samsung Electronics' performance bonus systems, which rewards a maximum of 100% of the monthly base salary based on the performance of the respective institutional sector and division twice a year.
In the case of the memory division, a significant performance improvement compared to last year was recognized, leading to a TAI of 200%. This is the highest figure ever recorded in the DS institutional sector, and a TAI of 200% was previously awarded to the MX division in the second half of 2013.
Previously, the DS institutional sector received performance bonuses that were lower than expected due to the 'semiconductor chill.' From 2015 to the first half of 2022, the DS institutional sector received a TAI of '100% of the monthly base salary' each time, but received only 50% in the second half of 2022 due to a decline in performance that began that same half-year.
In particular, last year, the division recorded an annual operating loss of about 15 trillion won and received only 25% in the first half across the memory division, foundry division, and system LSI.
In the second half of last year, the TAI was set at 12.5% for memory and 0% for foundry and system LSI due to cumulative losses. This was the lowest scale in the eight years since the TAI system was implemented.
This year, the atmosphere has changed. Analysts believe that although the memory division posted an operating loss of 10 trillion won last year, it will achieve an operating profit of around 20 trillion won this year. Additionally, to restore competitiveness in semiconductors and for motivation and morale boosting, a 2 million won encouragement fund will be provided to all units in the DS institutional sector.