Samsung Semiconductor Employees to Receive Up to 100% Performance Bonus

SEOUL, July 6 (Yonhap) -- Employees of Samsung Electronics Co.'s semiconductor business will receive performance bonuses of up to 100 percent of their base salary for the first half of this year, the company said Monday.

According to a notice, employees in the lucrative chip division will receive the maximum payout of 100 percent, matching last year's second-half bonus. The payments will be made on Wednesday.

The strong payouts come as the semiconductor industry enters an unprecedented AI supercycle, driven by rising shipments of high-bandwidth memory (HBM).

Analysts estimate that Samsung's memory division generated operating profit of about 140 trillion won (US$91 billion) in the first half alone. Full-year operating profit could approach 350 trillion won.

The company is scheduled to announce its second-quarter earnings guidance on Tuesday.

Meanwhile, a labor union representing employees in the division that oversees appliances, TVs and smartphones plans to hold a rally over the outcome of the wage negotiations.

The union plans to hold a demonstration near the company's plant in Suwon, south of Seoul, July 16.

Under the wage agreement reached in May, Samsung will provide a special semiconductor performance bonus equivalent to 10.5 percent of business performance earnings. The bonuses will be paid in company stock over a period of at least 10 years and will be tied to performance targets for the chip division.