Samsung Electronics is set to hand out record bonuses to its team as the artificial intelligence boom translates into profits. The company will pay out some of its biggest performance bonuses in years, as the global memory chip supercycle continues to bring in historic profits as a result of an increase in AI adoption. Device Solutions, the semiconductor division of Samsung, has announced that eligible staff will receive bonuses up to 47% of their base annual salary this month. The payout is expected to be applied across the division’s three businesses: memory, system, large-scale integration, and foundry. It also marks a sharp rebound from 2023, when the division’s bonus rate was 0% after the downturn experienced in the chip market. Samsung announces record bonuses for semiconductor division staff According to reports, this year’s bonus is slightly lower than Samsung’s internal maximum cap of 50%, reflecting the extraordinary recovery that the division has undergone since 2023. Samsung uses its performance-based incentive system called Overachieved Performance Incentive to reward its staff. The reward is carried out once every year and is calculated from 20% of the previous year’s economic value added. Samsung’s mobile MX division, which is in charge of the company ‘s Galaxy smartphone line, will see its OPI payout set at the full 50%. Meanwhile, divisions like consumer electronics and networks will see much lower rates, with reports noting that it could be around the 12% range, based on their 2025 performance. The bonuses come after Samsung announced a record-breaking fourth quarter operating profit of 20 trillion won ($13.6 billion), according to the company’s preliminary announcement. According to analysts’ estimates, the DS division contributed around 16 to 17 trillion won to the numbers, with the contribution driven by an increase in prices of both advanced and general-purpose memory chips. Aside from Samsung, another company preparing a payout for its staff is SK hynix. After scrapping its previous internal cap that had limited bonuses to the equivalent of 10 months’ base salary, the company is now expected to allocate 10% of its total operating profits to this year’s profit-sharing program. SK Hynix teases new profit-sharing program SK Hynix saw its full-year operating profit hit 45 trillion won, and with a workforce of 33,000, the average bonus that is expected to reach each employee is projected to reach more than 140 million, marking a new record high. The company is expected to pay 80% of the bonus up front and will defer the remaining 20% over two years. The company said it will also reintroduce the Employee Share Participation Program, which it debuted last year. Under the program, employees are allowed to choose to take half of their bonus in company shares and receive a 15% cash premium if they hold the stock for a year. The program is designed to encourage long-term alignment between staff and shareholders. Since 2024, Samsung and SK Hynix have redirected much of their chip capacity toward high-bandwidth memory. This is because producing them consumes about three times the wafer capacity of standard DRAM. In addition, the move has created a drop in supply for general-purpose memory such as DDR5, driving up its prices across the board. For SK Hynix, which holds a large share of the HBM market, these margins have been profitable. On the other hand, Samsung has been able to benefit from rising demand for HBM and higher prices in the general memory market due to its larger manufacturing scale. Samsung still retains its position as the global volume leader in the general memory market. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
