Samsung Electronics is reassigning top-tier researchers from its Semiconductor Research Center to various business units, including Memory, System LSI, and Foundry. This shift has raised concerns over potential workforce attrition, as the move is expected to lead to a decrease in performance bonuses for many employees, including those with advanced degrees.
Historically, employees at Samsung’s Semiconductor Research Center received higher-than-average bonuses, independent of the performance of individual business units. However, workers reassigned to underperforming units, such as System LSI and Foundry, are likely to see bonuses close to zero starting next year.
Industry sources say Samsung’s Device Solutions (DS) division began reallocating research staff in the second half of 2024 to boost competitiveness and address gaps in research and development. While many employees have been moved to the Memory division to support DRAM and NAND flash development, others have been reassigned to System LSI and Foundry to strengthen their R&D capabilities.
This restructuring is expected to result in lower Target Achievement Incentives (TAI) and Overall Performance Incentives (OPI) for Semiconductor Research Center employees. In previous years, these employees received above-average bonuses, regardless of the performance of the business units. For instance, in the second half of 2023, while the TAI for Foundry and System LSI was 0%, the Memory division received 12.5%, and the Semiconductor Research Center and the Samsung Advanced Institute of Technology each received 25%. With the Memory division returning to profitability this year, it is expected to receive OPI, while System LSI and Foundry, which remain in the red, will not.
Employees reassigned to System LSI from the Semiconductor Research Center have expressed concerns about the impact on their bonuses. “This year, I’m eligible for OPI as a Semiconductor Research Center employee,” one reassigned worker said. “But next year, I’ll be receiving bonuses based on my new business unit’s performance, which could result in a significant reduction or even no bonus.”
The restructuring could pose a risk for Samsung’s retention of key talent, particularly given the long-standing emphasis on advanced research at the Semiconductor Research Center. Under former Vice Chairman Lee Yoon-woo in 2009, the center focused solely on R&D, allowing employees to work independently of the business units’ performance. This structure, including the “Master” system that designates experts in specific fields, has been credited with helping Samsung maintain its technological leadership.
However, with skilled researchers now being shifted to business units, there are growing concerns that the Semiconductor Research Center’s competitive edge may be compromised. Samsung has already seen a notable loss of R&D talent in recent years, and there are increasing calls for a revision of the company’s evaluation and compensation system to better retain top talent.
A Samsung representative said, “While challenges are expected during this transition, we are working to implement a fair system to reward employees based on their performance. The restructuring of the DS division will continue into next year, with ongoing adjustments guided by both internal and external feedback.”
