Samsung Electronics will announce its 2025 annual executive reshuffle on Nov. 29, with significant layoffs expected in its semiconductor division Device Solutions (DS). Reports suggest the company plans to cut more than 100 executives from the DS division alone, marking an unprecedented downsizing of senior leadership in its semiconductor arm. Concerns are growing that many of these departing executives may transition to Chinese semiconductor firms, as domestic opportunities remain limited.
Industry sources disclosed on Nov. 28 that the reshuffle follows Samsung’s Nov. 27 presidential-level appointments. The DS division, often criticized for its oversaturated leadership structure, is reportedly the main focus of the cuts. Of the roughly 400 executives in the division, over 100—many with extensive experience in the memory business—are expected to leave.
Jun Young-hyun, vice chairman and head of the DS division, has previously identified poor interdepartmental communication and a lack of accountability as key challenges undermining the company’s competitiveness. He also criticized leadership’s tendency to avoid confronting problems and instead present overly optimistic, unrealistic plans.
Internal critics point to the company’s decision to expand promotions during the pandemic-driven IT boom as a critical misstep. This expansion, they argue, left Samsung with an inflated leadership structure that hindered collaboration and efficiency when market demand declined.
The executives departing Samsung Electronics’ Semiconductor are largely in their 50s and 60s, fueling speculation about career transitions to competitors. Chinese semiconductor firms have actively recruited engineers and executives from Samsung Electronics and SK Hynix in recent years, heightening fears of intellectual property leaks.
A recent case has further spotlighted these risks. On Nov. 25, authorities announced the arrest of Choi, a 66-year-old former executive at Samsung and SK Hynix, on charges of leaking Samsung’s proprietary 20-nanometer DRAM technology to China. The stolen technology’s economic value was estimated at over 4.3 trillion won (approximately $3 billion).
“Chinese firms, once reliant on intermediaries for discreet recruitment, now openly offer salaries three to four times the market average to lure South Korean talent,” said one source familiar with Samsung’s operations. The source added, “This has evolved into a more organized effort. Chinese-funded companies are recruiting aggressively, often under foreign identities, to obscure their affiliations.”
Efforts to retain experienced professionals in South Korea are underway. Ahn Ki-hyun, executive director of the Korea Semiconductor Industry Association, emphasized initiatives such as offering roles as patent examiners and fostering collaborations between academia and industry. “While these measures are helpful, it’s difficult to counter the draw of lucrative offers abroad completely,” Ahn acknowledged. “We’re striving to mitigate the impact, but preventing all engineers from pursuing opportunities overseas—particularly in China—remains a significant challenge.”
