Employees in Samsung Electronics' Device Solutions (DS) Division, which oversees the semiconductor business, will receive a Target Achievement Incentive (TAI) of up to 100% of their monthly base salary for the first half of this year. The maximum payout rate for the Device Experience (DX) Division, which handles mobile phones, televisions and home appliances, was set at 75%.
Payout rates varied across business units, however, as market conditions and profitability diverged. Unlike the semiconductor side, set-product businesses fell short of the 100% threshold due to intensifying market competition and rising cost pressures.
Samsung Electronics announced the first-half TAI payout rates through its internal network Monday. The bonuses are scheduled to be paid Wednesday.
The TAI is a performance bonus Samsung Electronics pays twice a year — once for the first half and once for the second — with payouts of up to 100% of monthly base salary determined by a comprehensive assessment of each division and business unit's financial results.
Within the DS Division, the memory chip unit will again receive the maximum rate of 100%, repeating its payout from the second half of last year.
The strong result reflects a sharp improvement in earnings driven by expanded HBM supply and rising prices for general-purpose DRAM, as the semiconductor industry enters what analysts have called a "super cycle."
Market analysts estimate the memory chip unit generated operating profit of approximately 140 trillion won ($90.9 billion) in the first half of this year alone. Some forecasts suggest full-year operating profit could approach 350 trillion won.
Beyond the memory chip unit, the System LSI and foundry divisions each received a 75% rate, while the Semiconductor Research Center, SAIT (formerly Samsung Advanced Institute of Technology) and shared divisions were set at 100%.
There is also speculation that the excess profit sharing bonus (OPI), paid out in early next year, could reach the cap of 50% of annual salary, buoyed by the rise in operating profit. An additional special management performance bonus agreed upon during this year's wage negotiations is also set to be paid.
Within the DX Division, the Visual Display (VD) and Home Appliances (DA) units received TAI rates of 50% and 25%, respectively.
The Mobile Experience (MX) unit's rate fell to 50% from 75% in the second half of last year.
Galaxy S26 series sales performed well, but the lower rate reflects a modest decline in profitability partly due to higher memory chip prices.
The Medical Devices unit and Korea Operations each received 75%, while the Networks unit, management support division and other organizations were set at 50%.
Samsung Electronics is scheduled to release its preliminary second-quarter earnings Tuesday.
Samsung Electronics affiliates announced their first-half TAI payout rates the same day.
At Samsung Display, the large-format panel unit handling television displays received 75%, while the small- and mid-size panel unit producing IT device displays received 100%.
Samsung Electro-Mechanics set a uniform rate of 100% across all business units, while Samsung SDI set a uniform rate of 75%.
go@heraldcorp.com
